Husin Bagis, the Indonesian Ambassador to the UAE, and Ridwan Hassan, Consul General of Indonesia in Dubai, yesterday rang the market-opening bell to celebrate the listing of two green sukuk issued by the Government of Indonesia Nasdaq Dubai, with a total value of $2 billion. Image Credit: Nasdaq Dubai

DUBAI: Saudi Tadawul index tumbled on Sunday, a few days before the inclusion in the MSCI emerging market index, as traders booked profits ahead of the event.

The Tadawul index fell as much as 260 points or 3.04 per cent to a low of 8,270.05, before trading at 8,352.82, down 2.09 per cent.

“As expected, there always is a downside just before inclusion. It is a normal correction for the market But you could also add the geopolitical tensions that seem to have risen significantly over the month, in addition to the fluctuations in oil,” Issam Kassabieh, senior Financial Analyst at Menacorp, told Gulf News.

The index has been on a downward trend, losing 11 per cent since the start of the month. The gauge has shed maximum of its gains so far since January 1, and the index is 6 per cent higher than what it was in January.

The MSCI said it will add Saudi Arabia’s Tadawul index to the emerging market index from close of May 28 with a weight of 1.42 per cent, the highest in the region. About 30 Saudi stocks will be added in the first tranche, the MSCI said in a statement. The second step would come in the August 2019 Quarterly Index Review.

Saudi Basic Industries Corp. was 2.37 per cent lower at 107 Saudi riyals. Al Rajhi Bank was at 67.90 riyals, down 1.45 per cent. Alinma Bank was at 24.06 riyals, 3.37 per cent lower than the previous close. “I do think that privatisation in Saudi could offset part of the downside,” Kassabieh said.

The Dubai Financial Market general index closed 0.80 per cent lower at 2,581.80. The Abu Dhabi Securities Exchange general index closed 0.05 per cent lower at 4,774.75.

“As for UAE, markets are just slow and the regional tensions are getting the best of traders. In addition to that, first quarter results do not indicate recovery for most firms,” Kassabieh said,

Dubai Islamic Bank closed 1.01 per cent higher at Dh5.02, while Emirates NBD closed 0.45 per cent higher at Dh11.05.

DAMAC Properties closed 0.67 per cent lower at Dh0.883. Arabtec closed 5 per cent lower at Dh1.44. Abu Dhabi Commercial Bank closed 1 per cent higher at Dh8.84.

Elsewhere in the Gulf, the Muscat MSM 30 index closed 0.13 per cent lower at 3,870.93. The Kuwait all share index closed 0.26 per cent higher at 5,591.58.