Dubai

The Saudi stock benchmark gained for another session on Thursday amid growing optimism post a slew of new catalysts.

The Tadawul index was 1.55 per cent higher at 7,448.89, after gaining 5.5 per cent in the previous session.

“The main catalyst (for the rally) has been the MSCI move, The second one was the political one that is expected to create stability,” Marwan Shurrab, head of high net worth and retail equity brokerage, Al Ramz said.

Food and beverages and retailing, insurance index witnessed 2-3 per cent gains, while capital goods index witnessed profit-taking, and fell 2 per cent.

Saudi Arabian Mining Co., or Maaden, closed more than 4 per cent higher at 49.25 Saudi riyals, while Almarai closed nearly 5 per cent stronger at 95.10 riyals. Among the losers, Saudi Basic Industries closed nearly 2 per cent at 102 riyals.

Buying surged on Wednesday, when traders reacted to new catalysts like addition of Saudi markets to the MSCI emerging market index watch list, and restoration of benefits and perks to government employees.

“The clients have taken this news as positive. It’s a combination of different strategies investing in Saudi market. Traders are buying and selling at the same time,” Shurrab said. Traded value fell to 7.5 billion riyals from over 9 billion the day before.

Analysts expect more upside in Saudi stocks. “The market is in a uptrend. It will target 8,000 levels in short to medium term,” Shurrab said.

Trading stocks

In Dubai, traders resorted to mild profit-taking in trading stocks like Gulf Finance House among others. The index closed 0.47 per cent lower at 3,402.31.

“We saw volatility today ahead of long weekend. The trading stocks were impacted today. The strategy is to sell and see what happens after Eid,” said Shurrab.

Gulf Finance House closed 8 per cent lower at Dh1.94. Emaar Properties closed nearly 1 per cent at Dh7.90. Union Properties closed 1.90 per cent lower at Dh0.930.

The Abu Dhabi Securities general index closed 0.62 per cent lower at 4,431.57. The Qatar exchange index closed 2.88 per cent higher at 9,030.44.