How to gain from tech gi­ant’s cap­i­tal growth

The National - News - - FRONT PAGE -

The Saudi Ara­bian stock mar­ket ended a five-day ris­ing streak yes­ter­day with lenders tak­ing a breather af­ter rid­ing high on a lend­ing boom re­lated to Saudi Aramco’s pub­lic list­ing.

Other mar­kets in the Ara­bian Gulf re­gion were mostly lower as con­cerns sur­round­ing global trade per­sisted.

To help lo­cal Saudis to buy Aramco shares, banks are mar­ket­ing loans, with some of­fer­ing four times the usual lend­ing limit, two fi­nan­cial sources said ear­lier this month.

The jump in lend­ing has prompted Saudi Ara­bia’s cen­tral bank to mon­i­tor bank­ing sector liq­uid­ity on a daily ba­sis but there have not been any is­sues so far, the cen­tral bank gov­er­nor said.

Aramco plans to sell 1.5 per cent of the com­pany, aim­ing to raise as much as $25.6 bil­lion in pro­ceeds. It has al­ready at­tracted ap­prox­i­mately 73 bil­lion riyals ($19.5 bil­lion) in in­sti­tu­tional and re­tail or­ders so far ac­cord­ing to Saudi Ara­bia’s Samba Fi­nan­cial Group.

Saudi’s in­dex fell 0.8 per cen­twith Al Ra­jhi Bank fall­ing 1.1 per cent and Bank Saudi Fransi drop­ping 1.5 per cent. Saudi Air­lines Cater­ing and Ab­dul­lah Al Othaim Mar­kets closed down 2.9 per cent and 3.2 per cent re­spec­tively as the stocks traded ex-div­i­dend.

Abu Dhabi’s in­dex traded flat as Al­dar Prop­er­ties and Emi­rates Tele­com pushed the in­dex side­ways, with the for­mer gain­ing 1.8 per cent and the lat­ter slip­ping 0.5 per cent.

“Lo­cal mar­kets are tak­ing a cue from global mar­kets that are wor­ried around U.S.-China trade talks”, said Vra­jesh Bhan­dari, se­nior port­fo­lio man­ager at Al Mal Cap­i­tal, adding that the Aramco IPO was re­ceiv­ing “a good re­sponse” from lo­cal in­vestors.

Dubai’s in­dex edged up 0.1 per cent sup­ported by a 0.4 per cent rise in its largest lender Emi­rates NBD.

Egypt’s blue-chip in­dex fell for a fifth straight ses­sion, los­ing 0.3 per cent. The Qatar in­dex was down 0.1 per cent, led by a 2.2 per cent drop in Qatar Com­mer­cial Bank.

Other mar­kets in the re­gion were mostly lower as con­cerns sur­round­ing global trade per­sisted

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