Saudi index rises on bank earnings

The Saudi Arabian stock market rose on Thursday as nearly all its banks surged ahead of earnings announcements, while Egypt dropped with most blue-chips declining.

The Saudi Tadawul index gained 0.7 per cent to 8,968 points with 10 of its 11 banks rising.

Riyad Bank rose 1.6 per cent and Banque Saudi Fransi added 0.6 per cent before both go ex-dividend in the next trading session.

Saudi banks are expected to report strong second-quarter earnings. Investment bank EFG Hermes forecast 7.6 per cent growth year-on-year in second-quarter profit for Saudi Arabia’s financial sector.

Saudi Enaya Co-operative Insurance surged 1.9 per cent after it won a medical insurance contract worth more than 5 per cent of its revenue last year.

Egypt’s blue-chip index decreased 1.4 per cent to 13,814 points as most of its shares turned red, with Commercial International Bank shedding 1.6 per cent and Ezz Steel slumping 7.7 per cent after swinging to a first quarter loss earlier this week.

Exchange data showed non-Arab foreigners were net sellers of Egyptian stocks.

The Abu Dhabi Securities Exchange index increased 0.5 per cent to 5,052 points, with First Abu Dhabi Bank, the country’s largest lender, ending 1.1 per cent higher and Aldar Properties up 2 per cent.

On Wednesday, the property developer was awarded Dh5 billion of development projects from the Abu Dhabi government.

Kuwait’s index closed 0.1 per cent higher at 6,777 points, as National Bank of Kuwait gained 1.1 per cent and Mobile Telecommunications rose 1.9 per cent. The index ended the session in positive territory for the 11th straight session, triggered by MSCI’s decision to move Kuwaiti equities to its main emerging-market index in 2020.

Kuwait has outperformed its Arabian Gulf peers in anticipation of the MSCI move and is up more than 28 per cent yearto-date.

The Dubai index eased 0.1 per cent to 2,686 points after rising as much as 0.6 per cent earlier in the day. Gainers included Al Salaam Group, up 2.8 per cent and Arabtec, which gained 1.8 per cent. Among fallers was Emaar Malls, down 2.5 per cent and a 0.4 per cent drop in Emaar Properties, slipping 0.4 per cent.