DUBAI: There is more upside left in Saudi stocks after recent profit-taking.
On Wednesday, Saudi Tadawul index was at 9,084.75, up 1.06 per cent. The Tadawul index has recovered 11 per cent in the past eight sessions from its low of 8,190 on May 14, after witnessing sideways movement in two weeks from May 13.
“The rally could go on especially if earnings come in positive; however the current political atmosphere isn’t looking great and could spook out investors. Having said that, we look forward towards the second phase of the inclusion, which could trigger once more another rally ahead of it,” Essam Kassabieh, Senior Financial Analyst at Menacorp told Gulf News.
Dar Alarkan Real Estate Development Co. closed at 10.90 Saudi riyals, up 3 per cent. Saudi Basic Industries Corp. ended 1.3 per cent higher at 120.80 riyals. Al Rajhi Bank ended 0.97 per cent higher at 73.20 riyals.
Emaar Malls has been holding up amid profit-taking on others counters. The Dubai Financial Market general index closed 0.44 per cent lower at 2,663.55.
Gulf Finance House closed 3.86 per cent lower at Dh0.889. Emaar Properties closed less than a per cent lower at Dh4.54. Damac Properties closed at Dh0.922, down 1.91 per cent. Aramex closed 1.63 per cent lower at Dh4.22.
“The performance is still weak as it is slow but the valuations are extremely attractive. Earnings need to improve and so does the regulatory framework for the market to rally,” Kassabieh said. Companies listed on the UAE bourses will be publishing their second quarter results from next month.
The Dubai index has been on a downtrend, but has gained 6 per cent from the recent low of 2,512 seen on May 21. The Abu Dhabi Securities Exchange general index has gained 6.85 per cent from the recent low of 4,670 seen on May 29. First Abu Dhabi Bank, which has been one of the best performing stock on the bourse. closed at Dh14.90, up 0.81 per cent. Etisalat Group closed 1.12 per cent higher at Dh16.24.
Abu Dhabi Islamic Bank ended 1.55 per cent higher at Dh4.60. Elsewhere in the Gulf, the Muscat MSM 30 index closed at 3,962.20, down 0.25 per cent.
The Qatar exchange index closed at 10,621.76, up 0.35 per cent.