Tadawul rebounds from an early sell-off

Saudi Arabia’s stock market survived an early sell-off to close in positive territory yesterday after the kingdom said Saudi journalist Jamal Khashoggi died in a fight at its consulate in Istanbul.

The Saudi index Tadawul closed up 0.2 per cent after falling as much as 3.5 per cent earlier in the session yesterday morning.

“There is still a layer of investor uncertainty around the reaction from different world leaders that is encouraging the mixed performance in the Saudi index,” said Jameel Ahmad, global head of currency strategy and market research at FXTM.

Saudi’s stock market has fallen around 4 per cent since October 2 because of concerns the Khashoggi case could trigger sanctions from the United States against Riyadh and shrink inflows of foreign investment.

Saudi Industrial Services Company slumped the most yesterday, with its stock falling 6.1 per cent.

Elsewhere in the region, Egypt’s blue-chip index fell 0.9 per cent after the government signalled a delay to its public share sale programme.

The government said on Friday it would postpone a planned offering of 4.5 per cent of tobacco producer Eastern Company, the first of several share sales including initial public offerings that were expected before the year-end.

The Dubai index slumped 0.8 per cent, with Dubai Islamic Bank falling 1.9 per cent and market bellwether Emaar Properties dropping 0.8 per cent.

In Abu Dhabi, First Abu Dhabi Bank slipped 1.4 per cent, while Emirates Telecommunications Group, or Etisalat, dipped 0.6 per cent. Abu Dhabi’s main index closed down 0.9 per cent.

In Qatar, Qatar Islamic Bank closed down 1.1 per cent, while Qatar Electricity and Water slipped 1.5 per cent after the company on Thursday reported a slight drop in ninemonth net profit to 1.16 billion riyals. The index finished 0.4 per cent down.

Tadawul has fallen around 4% since October 2 on concerns the Khashoggi case can trigger US sanctions