Dubai

Saudi Arabia’s Tadawul index remained sluggish for another session amid low volumes with some activity in the construction companies, despite billions of dollars worth of projects announced in the kingdom.

Saudi Arabia announced the construction of $500 billion mega city on the Red sea coast, Neom, but traders were looking for details.

“Markets are currently undermining these potential game changers and awaiting more colour on the execution strategy, in our view, which is well-reflected in tepid market turnover,” said Ankit Gupta, vice-president at Shuaa Capital.

The Tadawul index was 0.09 per cent lower at 6,899.88, continuing its sluggish performance. Total traded value was at 2.3 billion Saudi riyals, which was 25 per cent lower than the three month average.

The main focus was on construction sector. Al Jouf Cement Co. was 4.01 per cent higher at 8.05 riyals. Northern Region Cement Co. was up 1.9 per cent at 10.22 riyals. Yanbu Cement closed 3.16 per cent higher at 28.10 riyals.

“The market saw a significant traction in the Saudi cement sector, with action focused on the companies located in the north-western region where the new city is planned to be constructed,” Gupta said.

“We see this broader rally within cement sector as a bit premature with structural inventory issues and likely consolidation within the sector. We will focus on opportunistically building positions in KSA cement companies which have a scale, strong balance sheet, coupled with reasonable valuation amid this impending infrastructure boom,” Gupta added.

Deyaar jumps

In Dubai, Traded value in Deyaar Properties jumped to its highest level since April 2015 amid resurgent interest.

Deyaar hit a high of Dh0.565, the highest since April, before closing at Dh0.550, up 3.77 per cent. Emaar Properties closed 0.94 per cent lower at Dh8.47, while DXB Entertainments closed at Dh0.746, down 0.8 per cent.

The Abu Dhabi index closed lower as banking stocks weighed. The Abu Dhabi Securities Exchange general index closed 0.7 per cent lower at 4,467.72.

First Abu Dhabi Bank, Abu Dhabi Commercial Bank closed lower.

FAB closed 1.9 per cent lower at Dh10.30. ADCB closed 0.69 per cent lower at Dh7.15.

Elsewhere in the Gulf, the Muscat MSM 30 index closed 0.80 per cent lower at 4,958.57.