Dubai: Saudi’s Tadawul index ended lower after opening higher after the capital markets regulator finalised rules for opening up of its equities market.
Saudi’s Tadawul All Share TASI index ended was 0.07 per cent lower at
9,780.26, after trading in the range of 9,746.94-9,846.92. The index has gained more than 18 per cent in the year mainly on the back of recovering crude oil prices and expectations of opening up of markets.
“It has been a positive mood in Saudi. The opening up of Saudi markets to foreign investors was very well understood. But, overall we think that valuations are that cheap,” said Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group.
“We may see momentum taking the stocks higher but I woudn’t be surprised to see some sort of volatility,” Khokhar said.
A technical analyst, however, expect the Tadawul index to recover later this month.
“Tasi index may recover and hit a resistance of 10,149 this month. SABIC has a target of 120 Saudi Riyals and I still recommend a buy on the stock,” Al Ashri said.
Saudi Basic Industries, the world’s largest petrochemical company, ended 1. 26 per cent lower at 107 Saudi Riyals.
“The stocks in focus would be petrochemicals, consumer space and also the banks,” Khokhar said.
