Dubai: Saudi Arabia’s Tadawul index rose, extending its gaining streak for a third session on optimism over strong investor interest for a record $17.5 billion bond issue even as oil prices stayed above $50 per barrel.

The Tadawul index closed 1.56 per cent higher at 5,739.92, after gaining 3.49 per cent in the past two sessions.

“This is a story of how much they raised in the debt market. We think that was a key event to see a turnaround,” said Sanyalaksna Manibhandu, director Research, National Bank of Abu Dhabi Securities. “The generous pricing for the bond issue is also seen as a positive along with oil prices, which have been holding up very well.”

Saudi Arabia raised $17.5 billion through bonds, about 75 per cent higher than anticipated earlier, and the bond issue was oversubscribed nearly four times. That was a record issue among the emerging markets, even trouncing Argentinian bond issue of $15 billion issued in April.

“It’s not surprising that Saudi, which was a underperformer in 2016, is catching up slightly with the other markets,” Manibhandu said. Banking and financial services index rose 1.35 per cent, while petrochemicals index closed 0.75 per cent higher.

Dar Alarkan Real Estate Development Co. closed 9.81 per cent higher at 5.15 Saudi Riyals, while Saudi Kayan Petrochemical Co. closed 4.1 per cent higher at 6.60 Saudi riyals. About shares of 150 firms rose, while other 15 fell.

Catch-up

“The UAE markets underperformed other Gulf markets last week, so we saw a catch-up today,” said Manibhandu. “Abu Dhabi is being held down by banking results, so incase of better than expected results, that index may see a catch-up.”

The Dubai Financial Market General Index closed 0.45 per cent higher at 3,355.37. Emaar Properties closed more than 2.5 per cent higher at Dh6.82. Amanat closed more than 2 per cent higher at Dh0.859. Shuaa Capital closed half a per cent higher at Dh0.968.

Out of a total of 31 stocks traded on the exchange, shares of 13 firms rose, while other 11 fell. The rest remained steady. The Abu Dhabi Securities Exchange general index closed 0.11 per cent higher at 4,299.37. Going forward, much would depend on the third quarter results.

“The Saudi results can’t be a source of surprise, whether up or down. We would have to look at UAE results, if UAE banks come out with better than expected results, that may help Saudi Arabia and other GCC markets,” said Manibhandu. First Gulf Bank and National Bank of Abu Dhabi are due to publish results later in the week.

Elsewhere in the Gulf, the Qatar exchange index closed 0.04 per cent lower at 10,433.95. Muscat Securities MSM 30 index closed 0.44 per cent lower at 5,537.97.