Dubai: Saudi’s Tadawul index jumped the most in the Gulf region boosted by the announcement from the regulator on the timeline for opening up for foreign investors, consolidating its position as the top performer regionally.
Saudi’s Tadawul All Share TASI index ended 3.99 per cent to 9,619.97, its highest level in nearly a month.
“This rally was on the back of announcements made on Thursday. We expect the performance to continue,” said Mohammad Shabbir, Head of Equity Funds & Portfolios at Rasmala Investment Bank.
On Thursday, the Capital Market Authority said post the draft rules, which have already been published, the regulator will come out with the final rules on May 4, and the rules will be effective from June 1. The qualified foreign investors shall be allowed to invest in listed shares from June 15.
“Earnings came in better than expected so investors have at least 3 months of risk free environment as corporate news would be insignificant for the performance,” said Shabbir.
Volumes nearly doubled to 14 billion Saudi riyals on Sunday from a daily average volume of 7-8 billion riyals.
Sunday’s 4 per cent gain brings the total returns to 15.5 per cent on a year to date basis, making it the top performer in the region followed by Dubai index’s 3 per cent gains.
“The recent rally in the Saudi market from the year to date was due to expansion of the Saudi budget and the second factor was the opening up of Saudi markets,” Tariq Qaqish, head of asset management at Al Mal Capital, said.
