Saudi Tadawul continues with rebound
The Saudi Arabian stock market remained in positive territory yesterday after rebounding late last week from several days of profit-taking, while a pullback by two blue-chips dragged down Abu Dhabi.
The Saudi stock index closed up 0.2 per cent. Food and beverage company Almarai added 3.5 per cent after announcing first-quarter net profit of 344 million Saudi riyals against 328m riyals last year. Loss-making home furnishings maker Al Sorayai Trading was the best performer, adding a further 10 per cent after it jumped last week as its chief executive resigned.
Saudi Cement and City Cement Co rose 8.3 per cent and 3.4 per cent respectively. Bank Aljazira was the strongest bank, gaining 3.5 per cent after it said its rights issue of 300 million shares had been 90 per cent subscribed at the end of the subscription period.
Exchange data released after the close yesterday showed foreign investors bought a net $229m of Saudi stocks last week, one of the highest totals this year despite a wave of profit-taking after FTSE Russell decided, as expected, to upgrade Saudi Arabia to emerging market status.
In Qatar, foreign ownership limits were formally amended for Industries Qatar, Qatar Industrial Manufacturing, Qatar Islamic Bank and Qatar Electricity and Water; the ceilings rose to 49 per cent as of yesterday.
Qatar Electricity and Water was up 0.8 per cent and Qatar Industrial Manufacturing gained 0.3 per cent.
In Kuwait, the market rebounded for the first time since authorities divided it into three segments a week ago as part of reforms designed to boost liquidity and attract more foreign money. The index for the premier market, home to the largest and most liquid companies, rose 0.9 per cent.
Abu Dhabi fell 1.8 per cent, with First Abu Dhabi Bank losing 2.4 per cent and telecommunications firm Etisalat sliding 1.7 per cent.
Dubai lost 0.4 pe rcent as Gulf General Investment tumbled 9.8 per cent.
The conglomerate is in talks with lenders to restructure loans and credit lines after having defaulted on a debt repayment last year; it said yesterday it plans to discuss at a general assembly meeting late this month a proposed capital reduction to Dh586m from Dh1.7 billion.