Dubai: Saudi Arabia’s Tadawul index recovered from its early losses on Monday to trade flat as buying emerged as lower levels.

The Tadawul index recovered from an intra-day low of 8,267.63, and closed at 8,395.92, up 0.22 per cent. Petchem stocks were the major losers.

Market will start adjusting a bit as results come out. Overall the outlook is positive. Tadawul may target 9,000 in the near term.

- Mohammad Shabbir | Fund manager, Saudi Kuwait Finance House

“Market is holding up quiet well. Saudi Kayan results’ was below expectations, so there was pressure in other petchems companies,” Muhammad Shabbir, fund manager at Saudi Kuwait Finance House told Gulf News.

Saudi Kayan Petrochemical Co. closed more than 5 per cent to be at 13.42 riyals, while Sahara Petrochemical Co. closed 3.47 per cent lower at 15.58 riyals. Alinma Bank closed 0.59 per cent lower at 24 riyals. Saudi Steel Pipe Co. closed 0.44 per cent higher at 18.10 riyals.

Image Credit: Gulf News

“Banks, telecom and large cap stocks should perform good. Most of the buying are from foreign flows, which is still intact. Market would start adjusting a bit as results come out. Overall the outlook is positive. Tadawul may target 9,000 in the near term,” Shabbir said.

However in the short term, “International markets would dictate terms for the Saudi markets. Pending trade talks with China and geo-political tension would make traders cautious.” The Tadawul index has been one of the top regional performers with 7.27 per cent gains since January 1 mostly aided by foreign buying.

UAE stocks

Damac Properties fell in a flat Dubai market. Damac Properties closed down 4 per cent to be at Dh1.16.

“Damac stock is still bearish and may head towards the new support level of Dh1.05,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said.

The Dubai Financial Market General index closed 0.56 per cent down at 2,498.82.

“Currently traders are keen to selling on every recovery, and are buying back from support levels inorder to reduce their average buying cost. The support levels are at 2,430,” Prakash said.

In other stocks, Emaar Properties extended losses for another session, closing down half a per cent to be at Dh4. Air Arabia closed 1 per cent lower at Dh1. Emaar Malls closed more than 1.5 per cent lower at Dh1.65. DP World closed 0.24 per cent higher at $16.69. Dubai Islamic Bank closed flat at Dh5.07.

The Abu Dhabi Securities Exchange general index closed 0.39 per cent lower at 4,955.74. First Abu Dhabi Bank closed 0.69 per cent lower at Dh14.48.

In other regional indices, the Muscat MSM 30 index closed 0.56 per cent lower at 4,179.08. The Qatar exchange index closed 0.35 per cent lower at 10,722.14.

The Kuwait all share index closed 0.03 per cent lower at 5,492.79.