MSCI upgrade announcement saves Tadawul after 10-day fall

Dubai: Saudi Tadawul index snapped a 10-day losing streak, jumping more than 2 per cent on Wednesday, extending gains for another session, as traders digested the news on MSCI inclusion through which 30 of their stocks would be added to the emerging market index.

The Tadawul index was 2.29 per cent higher at 8,565.84, after losing 8.6 per cent from a high of 9,336 hit on May 1.

“The market witnessed rally as bargain hunting especially within banks and consumer retail drove the index. Many of these names are available 10-15 per cent cheaper now and offers good entry point for traders looking to position ahead of MSCI first inclusion,” Nishit Lakhotia, Head of Research at SICO Bank told Gulf News. “Any escalation on geopolitical tensions remains a near-term risk.”

Al Rajhi Bank was 2.99 per cent higher at 68.90 Saudi riyals. Dar Alarkan Real Estate Development Co. was 3.77 per cent higher at 9.38 riyals. Saudi Basic Industries Corp. was 0.54 per cent weaker at 111.40 riyals.

A fall in Dubai Islamic Bank (DIB) and Emaar Properties resulted in further decline on Dubai index. The Dubai Financial Market general index closed 1.12 per cent lower at 2,583.74. “The main trend still remains as the resistance of 50-day moving average of 2,700 still remains intact,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities, said. “A break below the support level of 2,520 shall extend the decline to the previous low of 2,429.”

DIB closed 2.34 per cent lower at Dh5. Emaar Properties closed 2.29 per cent lower at Dh4.27.

The Abu Dhabi Securities Exchange general index closed 0.52 per cent lower at 4,777.57. First Abu Dhabi Bank fell 0.57 per cent to end at Dh14. The Muscat MSM 30 index closed flat at 3,828.21. The Qatar exchange index closed 0.67 per cent higher at 9,864.26.