Dubai: Traded value tumbled ahead of the official inclusion of the Tadawul index in the FTSE Russell’s emerging market gauge.
Traded value has tumbled to $20 million (Dh73.45 million) now compared to $30 million seen in early February. The Tadauwl index closed 0.23 per cent higher at 8,446.07.
“Markets are stable, as the flows are not significant to disturb the equation,” said Muhammad Shabbir, Head of Funds and Portfolios at Saudi Kuwaiti Finance House (SKFH) told Gulf News.
Saudi Basic Industries Corp. closed 0.16 per cent higher at 121.80 riyals (Dh119.22), while Jarir Marketing Co. closed 0.39 per cent higher at 153.60 riyals. Al Rajhi Bank ended 0.10 per cent lower at 97.90 riyals.
“The market is directionless as it’s stock specific movement... There is buying and selling seen in some stocks. The outlook would depend on the first quarter results,” Shabbir said.
Saudi Arabia’s Tadawul index is expected to be included in the FTSE emerging market index from March 14 in a five tranche program, At the end the index will represent 3 per cent of the index. The phase one inclusion of Saudi Arabia is expected to bring in passive inflows of roughly $700 million. In total, the 5 phases spread out until September should drive in inflows of more than $4 billion, according to Al Mal Capital.
The market is directionless as it’s stock specific movement... The outlook would depend on the first quarter results.
Elsewhere in the UAE, the Dubai index witnessed profit-taking from higher levels from mid-session, forcing markets to close flat on Tuesday. Dubai Islamic Bank fell despite better than expected dividend as the stock price neared its resistance level. Emaar Properties witnessed selling from higher levels as traders booked profit, indicating further consolidation in the market.
In other stocks, Gulf Finance House closed 0.8 per cent higher at Dh0.966, while Damac closed 2 per cent higher at Dh1.40. The Abu Dhabi Securities Exchange general index closed 0.18 per cent lower at 4,861.68. Aldar Properties also eased from its intrad-day high of Dh1.95, closing Dh1.89, up 1.6 per cent.
Etisalat ended half a per cent lower at Dh16.72.
Elsewhere in the Gulf, the Muscat MSM 30 index closed 0.07 per cent lower at 4,082.68. The Qatar exchange index closed 0.22 per cent higher at 9,765.88.