Post vision plan, Saudi stocks play catch-up with UAE peers

27/04/2016 05:40 AST

Saudi stocks edged lower on Tuesday, snapping a three-day gaining streak as traders locked in profits after the index jumped to its highest level in seven weeks.

The Tadawul index ended 1.62 per cent lower at 6,757.14, after gaining 5.5 per cent in the previous three sessions. Despite a negative closing on Tuesday, Saudi’s Tadawul index has staged a decent recovery to trade in positive on year to date basis.

“Saudi is catching up with Dubai and Abu Dhabi indices. We could see some further positive momentum (in Tadawul index) till the upside of 7,000 levels. Markets would pullback, reassess, and then continue higher,” Musa Haddad, equity fund manager at National Bank of Abu Dhabi’s asset management group said, adding “the vision is a very positive long-term catalyst for the market.”

Dubai and Abu Dhabi indices staged a smart recovery due to rebounding oil prices, but stocks in Saudi Arabia lagged in performance. On Tuesday, Dubai Financial Market General index closed 0.16 per cent higher at 3,563.25.

Emaar Properties closed more than 1 per cent higher at Dh6.79, while Emaar Malls gained more than 4 per cent after the company posted a 20 per cent rise in net profit.

The Abu Dhabi Securities Exchange General index closed 1.05 per cent lower at 4,584.79.

Results eyed
Bank results are slated to be published on Wednesday, and consensus show a 5-9 per cent growth in net profit due to an economic slowdown.

“People are waiting for the results to be out before taking more bets. If they meet analysts expectations we could see some positive momentum in markets,” Haddad said, adding major resistance level would be at 3,600.

“Market would remain sideways for some more time. Market would need further catalyst to push higher,” Haddad added.

Elsewhere in the Gulf on Tuesday, Muscat Securities MSM 30 index closed 0.58 per cent higher at 5,960.56, while Qatar exchange index closed 0.07 per cent lower at 10,177.55.

Gulfnews