Tadawul rises to its highest in a month

KUWAIT INDEX UP 0.92% AFTER FIRST PHASE OF ENTRY TO FTSE EM INDEX

Oil prices rose to their highest level in four years, positively impacting the stock market of a Middle East powerhouse heavily reliant on oil |

The Tadawul index jumped more than 1.5 per cent yesterday to close in on its highest level in a month as rising oil prices fanned risk appetite for Saudi shares.

The index rose as much as 1.8 per cent to 7,908.42, the level last seen in early September, before closing 1.76 per cent higher at 7,905.27.

Oil prices rose to their highest level in four years, positively impacting the stock market in a country heavily reliant on oil.

Energy and materials shares were the top performers in trade, registering gains of 1.66 and 2.21 per cent respectively.

Saudi Basic Industries Corp (Sabic), one of the most active stocks during the session, closed 2.8 per cent higher at 125.80 riyals (Dh123.13). The total value of trade stood at 2.8 billion riyals.

The Tadawul index declined more than 3.7 per cent last week alongside other emerging markets and amid heightened geopolitical concerns. “We believe that we are going through a technical correction. This should create excellent opportunities to bargainhunt high quality, strong companies,” Al Mal Capital said in a note last week.

The Tadawul index has been one of the best-performing stock markets in the region, with 13 per cent gains so far in the year.

Liquidity woes in Dubai

The Dubai Financial Market (DFM) General Index closed 0.03 per cent higher at 2,754.04 amid a lack of volume. Traded value weighed in at Dh155 million, down from the Dh200-Dh250 million seen a few weeks ago.

Al Salam Bank was the most active stock, contributing 20 per cent of total trade value and closing 2.15 per cent higher at Dh1. Islamic Arab Insurance Company (Salama) closed more than 2 per cent higher at Dh0.627.

The Abu Dhabi Securities Exchange General Index ended the day 0.06 per cent up at 4,891.78.

Elsewhere in the Gulf, the Kuwait index closed 0.92 per cent higher at 5,136.50 following its first phase of entry to the FTSE Russell Emerging Market Index.