Tadawul buoyed by oil gains

29/08/2016 05:35 AST

Shares in Saudi Arabia snapped a five-day losing streak on Sunday, buoyed by last week’s rise in oil prices.

UAE bourses, by contrast, closed lower. The Tadawul closed up 1.5 per cent, led by Al Rajhi Bank and Saudi Cement, as investors took advantage of cheap valuations following last week’s declines.

"Saudi PE ratios, which are usually at a premium, are now lower than those for emerging markets as a whole," said Sanyalak Manibhandu, the head of research at NBAD Securities in Abu Dhabi.

"Then there is the prospect of a new bond issuance as soon as five weeks from now, which will significantly boost liquidity in the banking system."

Saudi equities were further buoyed by rising oil prices at the end of last week, on renewed speculation that informal talks among Opec members next month will help to stabilise prices. Brent crude closed at $49.92 per barrel on Friday.

Shares in Dubai opened up around half a per cent, but retreated throughout a quiet trading day to close marginally lower at 3,490.27.

DIB and du both fell by about 0.7 per cent, offsetting gains by DFM, Emirates NBD and Aramex.

The Abu Dhabi Securities Exchange General Index closed down 0.4 per cent at 4,499.74, the index’s lowest level in two months. FGB and Etisalat acted as the main drag on the index, closing 0.8 per cent and 0.2 per cent lower.

Sharjah Islamic Bank led gains, rising 3.3 per cent to Dh1.55. Elsewhere in the region, the Qatar Exchange closed up by 0.5 per cent, on gains from QNB and Aamal.

The National