Dubai: The Saudi and Oman indices ended in the positive territory on Thursday even as crude oil declined in New York overnight.
Saudi’s Tadawul index snapped a two-day losing streak in trade led by petrochemicals. The Tadawul All Share Index (Tasi) ended the session 0.91 per cent higher at 8,409.5, after losing close to 6 per cent in the previous two sessions.
“The Saudi index would go down and may test the support level of 8,333, and then it would recover 8,700,” said Osama Al Ashri, member of British organisation, Society of Technical Analysts.
Alahli Takaful ended 9.96 per cent higher at 45.50 Saudi riyals, while Arabian Shield Cooperative Insurance also jumped 9.75 per cent at 45.50 riyals.
Out of 163 stocks traded on the exchange, shares of 127 companies rose, while 27 fell.
National Industrialisation may go down and test support level of 22.10 riyals, said Al Ashri. The stock ended 4.21 per cent higher at 27.72 riyals.
National Gypsum may go down again and test support level 17.90 riyals, said Al Ashri. The stock ended 1.97 per cent higher at 23.83 riyals.
Crude oil, on which Saudi is heavily dependent on, fell in 2014 by the most since the 2008 global financial crisis as US producers and the Organisation of Petroleum Exporting Countries ceded no ground in their battle for market share amid a supply glut.
The US benchmark ended at a five-year low Wednesday, capping a 46 per cent drop in 2014, as stockpiles of crude oil and gasoline reached seasonal record highs and as the Organisation of Petroleum Exporting Countries (Opec) produced more than its quota in December for a seventh month.
Foreign money
Meanwhile, Saudi Arabia is seeking to open its $509 billion stock exchange to foreign investors in April. The world’s biggest oil exporter is removing barriers to one of the world’s most-restricted stock exchanges as it pursues a $130 billion spending plan to boost non-energy industries.
Investors from outside the six-nation Gulf Cooperation Council are not allowed to buy shares directly and have to access the market through equity swaps and exchange-traded funds. Regulators may also cap foreign ownership of a single stock at 49 per cent, according to draft rules.
Elsewhere, the Muscat Securities MSM 30 Index ended 0.16 per cent higher at 6,353.50 even as traders awaited the budget announcement. Out of 37 shares listed on the exchange, shares of 19 companies rose, while shares of 4 companies declined.
Rest of the markets in the Gulf were close due to a public holiday on New Year’s Day.