S.Arabian stocks lead most Arab markets higher

19/10/2015 05:28 AST

Equities in Saudi Arabia led most Arab markets higher after global stocks rallied and Brent crude rose above $50 a barrel.

The Tadawul All Share Index climbed 1.2 per cent to 7,789.79 as of 1:41pm in Riyadh, led by a 2.7 per cent jump in Al Rajhi Bank and a 3 per cent increase in Saudi Basic Industries Corp., one of the world’s largest petrochemical producers. Dubai’s DFM General Index closed 0.3 per cent higher and Abu Dhabi’s ADX General Index added 0.6 per cent.

“Because there’s an absence of any local catalysts and because stock markets rallied worldwide, investors have courage to buy stocks in the region without worrying about a crash,” said Sebastien Henin, the head of asset management at The National Investor in Abu Dhabi, who’s looking at banking and real estate stocks in Kuwait and Egypt, respectively, due to low valuations. “While the impact of oil’s increase won’t be material on a macroeconomic level, it could have an impact on a sentimental level given how reliant the region is on energy.”

Stimulus measures Global equities are climbing as a run of weaker-than-estimated economic reports from Asia to Europe boosts speculation central banks will maintain stimulus measures. US stocks are on track for the best performance in four years and the Stoxx Europe 600 Index rose for a second day on Friday. Brent crude, a benchmark for half the world’s oil, also advanced after Baker Hughes said rigs targeting oil in the US fell to a five-year low last week, raising speculation the nation’s output may drop.

The six-nation Gulf Cooperation Council is home to about 30 per cent of the world’s proven oil reserves. Qatar’s QE Index fell 0.1 per cent and Bahrain’s measure lost 0.7 per cent, while gauges in Kuwait and Oman rose 0.7 per cent and 0.3 per cent.

Egypt’s EGX 30 Index retreated 0.5 per cent as the central bank weakened the Egyptian pound in its third round of devaluations this year. Commercial International Bank Egypt SAE, the nation’s biggest-listed lender, fell 1.3 per cent. The regulator weakened the currency by 1.3 per cent at a regular sale of dollars to lenders on Sunday, taking its decline on the year to 11 per cent.

Egyptians started voting on Sunday in the first parliamentary election in more than three years as the government of President Abdel-Fattah El-Sisi aims to have a sitting parliament before year-end.

The Gulf Today