Tadawul: Saudi stocks post monthly gain of 6.92%

02/11/2016 05:15 AST

Saudi Arabia’s stock market ended a nine-day rising streak on Tuesday as banking shares were hit by profit taking, while bourses in the rest of the region were mixed.

Saudi Arabia’s Tadawul All-Share Index (TASI) had surged 10.1 percent over the nine trading days through Monday, led by banks, after Riyadh’s huge international bond issue reduced jitters about the economy’s ability to cope with low oil prices and began to ease tight banking system liquidity.

At the end of last month, TASI closed at 6,012.22 points, increasing by 388.88 points 6.92 percent over the close of the previous month.

The index is still down 13.23 percent for the year. The highest close level for the index during October was 6,012.22 point on Monday. Total equity market capitalization at the end of Oct. 2016 reached SR1,420.15 billion ($378.71 billion), increasing by 7.15 percent over the close of the previous month.

The total value of shares traded for October 2016 reached SR65.66 billion ($17.51 billion), increasing by 57.33 percent over the previous month.

On Tuesday, however, TASI retreated 0.3 percent as the banking sector pulled back 0.6 percent. The biggest lender, National Commercial Bank, closed flat at SR43.80. The petrochemical sector, the market’s other big sector, fell 0.8 percent after oil prices dropped late Monday.

Most shares gaining ground were second- or third-tier stocks favored by local retail speculators, such as Al-Sagr Cooperative Insurance, which was up 1.3 percent. The replacement of veteran Finance Minister Ibrahim Al-Assaf with Mohammed Al-Jadaan, previously chairman of the Capital Market Authority, had no significant impact on the market. Dubai’s stock index dropped 0.3 percent as real estate blue chip Emaar Properties lost 1.6 percent. But Dubai Investments gained 1.5 percent after reporting a 35.9 percent rise in third-quarter net profit to AED334.4 million ($91 million).

Abu Dhabi’s index was flat and Qatar rose 0.3 percent as property firm Ezdan Holding jumped 3.5 percent; it had edged down to a seven-month low on Monday after reporting a flat third-quarter profit.

In Egypt, the index climbed 0.7 percent but foreign investors were net sellers by a large margin for a second straight day because of speculation that a major currency devaluation could be imminent, given the Egyptian pound’s plunge in the black market.

Property developer Amer Group Holding climbed to 0.25 pound from 0.24 pound after reporting a rise in third-quarter consolidated net profit to 76.3 million pounds ($8.6 million) from 43.6 million pounds a year ago.

Arab News