Saudi Arabian stocks rebounded from Saturday’s three-month closing low Sunday as buyers came into the market following the index’s fall below a key resistance level.
The stock benchmark Tadawul All Share Index rose 0.19 percent to 6,979.55 points, after dropping nearly 2 percent the previous day - taking it to a close below 7,000 points for the first time since February 21.
"There was probably a feeling that yesterday was a little bit over-done," said Julian Bruce, EFG-Hermes’ director of institutional equity sales. "7,000 is a key index level so the fall below that might have triggered some buyers."
Banks, hit heavily in Saturday’s slump, recovered some ground, with heavyweight Al Rajhi Bank up 0.4 percent and Alinma Bank advancing 0.4 percent.
Utility Saudi Electricity Company rose 0.4 percent, taking year-to-date losses to 6.1 percent. Shares in the monopoly provider hit a nine-month intra-day low on Saturday.
However, light volumes point towards a limited rally in stocks, with some signs of retrenchment already underway, Bruce said.
Meanwhile, Dubai’s index slumped in early trade as gloomy global sentiment weighed on Gulf Arab markets. The Dubai benchmark fell 1 percent to 1,462 points, taking its losses to 16.7 percent since March 5’s 16-month high.
Deyaar Development declined 2.3 percent, Union Properties fell 1.4 percent.
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