Saudi stocks surge to best day on mega $1.3 trillion roadmap
Banks and petchems outperformed as they would be biggest gainers from the investment move
Dubai: Saudi Arabia's $1.3 trillion private sector investment roadmap delighted the kingdom investors, sending the stocks soaring to their best day in a year. Petrochemical and banking shares led the way.
Saudi Arabia's benchmark index surged 2.8 per cent at 9,908 points, marking its best day in nearly a year, after the kingdom's crown prince unveiled a 5 trillion riyals worth of investment plan aimed at boosting the private sector by 2030. The move, led by Saudi Aramco and Sabic, will help the country diversify its economy away from oil and create millions of jobs for Saudi nationals. The investment roadmap is part of 12 trillion riyals of investments including 3 trillion riyals from the Public Investment Fund and 4 trillion riyals coming from a new Saudi investment strategy.
Leading gains
Lender and petrochemical stocks outperformed other sectors as these sand to gain the most from the plan. Sabic soared 5.6 per cent to trade at SR117.4 and Saudi Aramco jumped 2.7 per cent to lead the gains in the petrochemical sector, while Al Rajhi Bank and National Commercial Bank surged above 5 per cent, leading the banking pack.
Dubai Financial Market traded 0.3 per cent lower at 2,550 points after three days of consecutive gains prompted investors to take their profits amid uncertainty in global markets as the pandemic rages on. Real estate stocks pushed the index lower after leading it higher in the last three sessions. Emaar Properties, Emaar Development, Union Properties, Deyaar Development and Damac Properties all dropped, but they are expected to get back to the rising trend as the property market in the emirate embarked on bottoming out.
Abu Dhabi Securities Exchange gained earlier in the session before ending the day nearly unchanged at 5,913 points. The index gave up intra-session gains as it came under selling pressure from Aldar Properties, Abu Dhabi Commercial Bank and Abu Dhabi Islamic Bank that headed lower, which was in contrast to National Bank of Ras Al Khaimah and Sharjah Islamic Bank that provided some support to the index.
Bouncing back
Kuwait premier index closed the day higher by 0.9 per cent, rebounding from 6 days of straight losses that made the stock valuations more attractive for investors. Financial stocks played the biggest boost with Kuwait Finance House and National Bank of Kuwait advancing 1.6 and 1.4 per cent, respectively.
Oman's 30-company index ended the session up 0.7 per cent at 3,709 points with the telecom firm Omantel and Oman Cement moving upward ahead of going ex-dividend on Thursday. Wednesday is the last day to buy these stocks to claim their last declared dividends.
Bahrain shares edged up 0.3 per cent to trade at 1,458 points. Bank of Bahrain and Kuwait, National Bank of Bahrain and APM Terminals Bahrain rose, pulling back from earlier losses when the stock traded ex-dividend.