Saudi stocks lead gains again on oil but volumes low

Dubai

Saudi Arabia’s Tadawul index extended gains for another day as strong oil spurred risk appetite, but volumes remained low.

The Tadawul index closed 1.72 per cent higher at 6,204.08. Shares worth 3.838 Saudi Riyals, compared to 5 billion riyals a few weeks ago.

“This rally is on the back of news coming out on co-operation pact between Saudi and Russia, and we expect this rally to continue going into the meeting if we have these positive statements coming in,” said Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group. Brent crude, on which the Gulf countries depend on for revenues, gained more than 5 per cent on the pact between Saudi Arabia and Russia.

In stock specific movement, Alinma Bank closed 1.5 per cent higher at 12.80 riyals, while Dar Alarkan Real Estate Development closed 3.94 per cent higher at 5.8 riyals. “I would be positive on sectors like banks, real estate and petro chemicals. The index which has been a laggard compared to UAE and other regional markets has the potential to move forward,” Khokhar said. Emaar The Economic City closed more than 5 per cent higher at 13.85 riyals.

Shuaa surges

Dubai and Abu Dhabi witnessed buying in selective stock as outlook is still bullish,

Shuaa Capital rose to hit an upper circuit due to fresh buying. Dubai Banking Group earlier in June to sell over 48 per cent stake in Shuaa Capital to Abu Dhabi Finance Group. Shuaa Capital rose as much as 14.96 per cent to close at Dh0.799.

Union Properties witnessed its highest volume in four months. Shares worth Dh101 million were traded, the highest since mid-April. The stock finally closed 4.01 per cent higher at Dh0.778. HITS Telecom closed Dh0.501, up 2.04 per cent. The Dubai Financial Market General Index closed 0.31 per cent higher at 3,546.23.

Banking stocks recovered in Abu Dhabi, causing the index to end in positive zone. National Bank of Abu Dhabi closed 2.73 per cent higher at Dh9.40. Abu Dhabi Islamic Bank closed 0.54 per cent higher at Dh3.75. First Gulf Bank closed 2.14 per cent higher at Dh11.95. Aldar Properties closed 1.45 per cent higher at Dh2.80. Abu Dhabi Securities Exchange general index closed 0.20 per cent higher at 4,481.04. The Abu Dhabi Securities exchange closed 0.89 per cent higher at 4,512.01.

“The UAE indices are expected to be positive if we have a concerted push to prop up oil prices,” Khokhar said.

Elsewhere in the Gulf, Qatar exchange index closed 0.10 per cent lower at 10.839.73. Muscat MSM 30 index closed 0.36 per cent higher at 5,748.56. Kuwait stock exchange index closed 0.27 per cent higher at 5,380.80.