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Stock price information displayed in the Saudi Stock Exchange, also known as the Tadawul, in Riyadh. Image Credit: Bloomberg file

Dubai: Saudi’s Tadawul index jumped nearly 2 per cent on Monday, continuing its gaining streak amid foreign buying after the index was upgraded to the MSCI emerging market index.

The Tadawul index was 1.72 per cent higher at 8,849.21, after hitting an intra-day high of 8,866.10, or 1.92 per cent compared to the previous close. The wider MSCI emerging market index was also 1.13 per cent higher at 1,018.73.

“In Saudi, the index inclusion trade seems to be very much in play. We shall see the FTSE’s next tranche later this month and think stock is being accumulated by opportunistic foreign investors, including GCC institutions,” Vrajesh Bhandari, senior portfolio manager with Al Mal Capital said.

8849.21

closing value of Saudi’s Tadawul index on Monday

The MSCI added the Tadawul index to the emerging market index at the close of trading on May 28 with a weight of 1.42 per cent, the highest in the region.

About 30 Saudi stocks were added in the first tranche, and the second step will come in the August 2019 Quarterly Index Review.

Alinma Bank was 0.49 per cent higher at 24.66 Saudi riyals, while Al Rajhi Bank closed 0.76 per cent higher at 71.40 riyals. Saudi Basic Industries Corp. ended 2.61 per cent higher at 118 riyals.

The Dubai Financial Market general index closed 0.90 per cent higher at 2,674.77.

1.72%

rise in value of Tadawul index over the previous close

“The short-term trend still remains bearish on Dubai index and the index must close over 2,700 for a trend reversal,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said.

Air Arabia witnessed buying along with Emaar Properties, DP World and Dubai Islamic Bank. Emaar Properties, which was the most-active stock in trade, closed 1.56 per cent higher at Dh4.57. DP World closed 2.28 per cent higher at $18.39. Deyaar witnessed profit-taking and closed 2.18 per cent higher at Dh0.328.

The Abu Dhabi Securities Exchange general index closed 0.84 per cent higher at 4,997.83.

First Abu Dhabi Bank ended 1.50 per cent higher at Dh14.90. Aldar Properties closed 2.81 per cent higher at Dh1.83.

Elsewhere in the Gulf, the Muscat MSM 30 index closed 0.46 per cent higher at 3,973.03.