Tadawul index tumbles with global peers

INDEX GAINED MORE THAN 11% THIS YEAR BUOYED BY STRONG OIL PRICES

Saudi Arabia’s Tadawul index fell more than 1 per cent yesterday, falling in line with global markets. The Tadawul index was 1.12 per cent lower at 7,906.11. The index has gained more than 11 per cent so far in the year as strong oil prices, which hit their highest level in four years, fanned investor optimism.

“It’s taking leads from global markets, and local markets are adjusting to the relatively lower level on the index,” Muhammad Shabbir, portfolio manager at Saudi Kuwaiti Finance House said.

“There is a disconnect between the macro environment and non-oil economic growth because of lack of spending from the government and private sector,” Shabbir said.

Materials along with consumer durable indices were the most hit, along with energy stocks.

Saudi Basic Industries Corp. was 1.43 per cent lower at 124 Saudi riyals, while Saudi Kayan Petrochemical Co. was 4 per cent lower at 16.70 riyals. Going ahead, market participants will focus on the third quarter to September results.

“Markets would be reflecting on the third quarter results after Advanced Petrochemicals announced a flat net profit,” Shabbir said.

Advanced Petrochemicals reported a 3 per cent decline in third quarter net profit.

Dubai, Abu Dhabi

The Dubai Financial Market (DFM) general index closed 0.06 per cent lower at 2,790.17. Drake and Scull’s share prices ended 2.96 per cent higher after the company’s shareholders voted against dissolving the business at a general assembly, which was held to discuss the matter. Gulf Finance House closed 2.96 per cent higher at Dh1.39. Emirates NBD closed 0.21 per cent higher at Dh9.40.

The Abu Dhabi Securities Exchange general index closed 0.2 per cent lower at 4,997.35. The index has gained more than 18.5 per cent since January 1, making it the top regional gainer. “Abu Dhabi market is ahead of other markets in adjusting to the changed environment amid high oil prices,” Shabbir said.