Saudi stocks lead regional gains after vision plan announcement
April 25, 2016
Buying was seen in all sectors from banking to real estate stocks
Siddesh Suresh Mayenkar
Saudi’s Tadawul index reversed from morning lows, jumping more than 2.5 per cent with heavy buying witnessed in banking and real estate stocks after the government announced its vision plan for 2030.
The Tadawul index recovered from its low of 6,647.90, before closing 2.53 per cent higher at 6,868.09.
“The vision plan is a good start and investors were cheering on that. There was heavy buying in more or less all sectors but mainly banks, and real estate,” said Mohammad Shabbir, head of equity funds & portfolios at Rasmala.
The banking index was up more than 4 per cent, while petchem index was also up 2.42 per cent. Telecommunication index was up 3.5 per cent, while real estate index was also up more than 4 per cent.
Saudi Basic Industries ended more than 5 per cent to be at 86 Saudi Riyals, while Alinma Bank ended nearly 3 per cent higher at 14.20 Saudi Riyals. Saudi Kayan Petrochemical Co. ended 2.26 per cent higher at 6.80 Saudi Riyals.
Out of a total of 167 stocks traded on the exchange, shares of 100 firms rose.
Elsewhere in the Gulf, weighed by an early fall in oil prices, Dubai index ended less than a per cent lower, while Abu Dhabi index ended a tad higher.
The Dubai Financial Market General index closed 0.72 per cent lower at 3,557.47, while the Abu Dhabi Securities Exchange general index closed 0.26 per cent higher at 4,633.21. Arabtec ended more than 1 per cent lower at Dh1.69, while Gulf Finance House closed more than 4 per cent lower at Dh0.883.
“People are expecting some correction, as long as that does not happen and market would consolidate in the mean time,” said Shabbir. Saudi’s Tadawul index has been on rallying for the past few sessions, and entered the bull market territory after recovering more than 20 per cent from its recent low. The Dubai index is also up nearly 13 per cent from January 1 on the back of a 60 per cent recovery in oil prices.
Elsewhere in the Gulf, Qatar exchange index closed 0.76 per cent lower at 10,284.51, while Muscat Securities MSM 30 index closed 0.58 per cent higher at 5,926.14.