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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