Dubai: Saudi Arabia’s Tadawul index was spared the horror of a sell-off on Thursday.
The index witnessed its sharpest rise in more than a week, bucking a weak global trend, after Saudi Crown Prince Mohammad Bin Salman vowed to bring justice in journalist Jamal Khashoggi’s case.
The Tadawul index rose as much as 7,854.25, before trading 4.10 per cent higher at 7,820.35. The recovery meant that the Tadawul index managed to gain more than 5 per cent in the year so far compared to a near flat performance in the same time period till Wednesday.
"Tadawul is up as there is considerable improvement in sentiment with the successful conclusion of the investment conference."
— Muhammad Shabbir | KFH
“Tadawul is up as there is considerable improvement in sentiment with the successful conclusion of the investment conference and abating of international pressure. And they were already under pressure since the start of the month,” Muhammad Shabbir, head of funds and portfolios at Saudi Kuwaiti Finance House, told Gulf News.
The index went into a tailspin after the killing of Khashoggi came to light. But the market witnessed an unusual trend of institutions ploughing in billions of riyals to prop-up the market.
"We are seeing the strong statements made by MBS which could lead to heavy investments in the region over the years to come."
— Issam Kassabieh | Menacorp
Elsewhere, the Dubai Financial Market (DFM) general index saw late recovery in the last hour of trade.
“Again when it comes to UAE markets, specifically Dubai, the market had already taken several hits this year; as for other regional markets in the Gulf, earnings are here and in addition to that, we are seeing the strong statements made by MBS which could lead to heavy investments in the region over the years to come,” Issam Kassabieh, senior financial analyst at Menacorp said. The Dubai index closed 0.06 per cent lower at 2,736.40, recovering from a low of 2,706.90.
In stock specific movement, Emaar Properties closed 2.2 per cent higher at Dh4.98. The stock contributed to about 24 per cent of the total volumes.
Gulf Finance House closed less than a per cent lower at Dh1.26.
The Abu Dhabi Securities Exchange general index closed 0.89 per cent lower at 4,882.26. “Abu Dhabi’s index is still favoured this year yet weak volumes have not offered plenty of opportunities for speculators in particular those with a knack for intraday trades,” Kassabieh said.
The Abu Dhabi index has been a strong performer in the region with 11 per cent gains so far in the year. Elsewhere in the Gulf, the Muscat MSM 30 index closed 0.22 per cent lower at 4,452.91. The Qatar exchange index closed flat at 10,153.36.