DUBAI: Foreigners are still buying Saudi stocks, but at a slower pace.
Foreigners bought more than $200 million (Dh734.5 million) worth of shares on Thursday compared to an average of $300 million in May. Foreigners bought a total of $6.5 billion in May and are expected to buy $1.72 billion in June. Analysts expect a lull in July and expect buying to start in August.
“We still have triggers such as MSCI inclusion and FTSE inclusion, so that’s drawing foreign interest,” Mohammad Shabbir, Head of Funds and Portfolios at Saudi Kuwaiti Finance House (SKFH), told Gulf News.
The Tadawul index gained nearly 8 per cent in the past five sessions, before closing 0.61 per cent lower at 8,886.84. The Tadawul index has been the best performing index with 13.54 per cent gains in the year so far.
“The index is stabilising around 9,000 and we would expect some softening and that would be a good buying opportunity. We could see levels of 10,000 by end of the year,” Shabbir said.
The FTSE will include the second tranche of the Tadawul index in the emerging market index next week, while the second tranche on the MSCI emerging market index would be included in September. Analysts expect tens of billions of dollars to flow into the bourse due to the inclusion.
Elsewhere in the UAE, the Dubai Financial Market general index closed 0.74 per cent lower at 2,614.03.
“The short term trend still remains bearish with lower support seen at the 2,605/2,550 levels,” Shiv Prakash, senior analyst with First Abu Dhabi Bank, said.
Emaar Properties saw profit-taking and ended at the day’s low of Dh4.36, down 2.46 per cent from the previous close.
Emaar Properties shares recovered 14 per cent in nine trading sessions to hit a high of Dh4.63 on June 10, recovering from a low of Dh4.06 hit on May 21.
Dubai Islamic Bank closed 0.80 per cent higher at Dh5.04. Gulf Finance House closed at Dh0.870, up 1.16 per cent. Salama Insurance rose 2.7 per cent to end at Dh0.570.
The Abu Dhabi Securities Exchange general index closed 0.17 per cent lower at 4,955.26. First Abu Dhabi Bank closed 0.13 per cent lower at Dh14.86. Abu Dhabi Commercial Bank closed 1.57 per cent higher at Dh8.43. The Muscat MSM 30 index closed 0.08 per cent lower at 3,915.25. The Qatar exchange index closed 0.34 per cent lower at 10,479.63.
About 64 institutions registered in the first quarter of 2019 on the Dubai Financial Market (DFM), taking the total to 11,000.
“The roadshow’s ability to attract new institutions as well as the significant increase in number of meetings for participating companies underline institutions’ confidence in DFM’s lucrative and diversified opportunities and its status as the preferred gateway to the rapidly growing economies in the UAE and the region. The DFM has diversified listed securities for leading companies in the UAE as well as dually-listed companies from other countries in the region,” Essa Kazim, Chairman of DFM, said.
Meanwhile, Al Ramz Capital, a subsidiary of Al Ramz Corporation Investment and Development, has been appointed as a Liquidity Provider for Ras Al Khaimah Cement Company Shares after obtaining the approval of Abu Dhabi Securities Exchange.