Saudi stocks continue upward movement

30/01/2017 11:17 AST

Middle East stock markets were mixed on Sunday as uptrends in Saudi Arabia and Kuwait continued to divert regional investors’ money away from the United Arab Emirates (UAE) and Qatar.

The Tadawul All Share Index (TASI), which climbed 3.8 percent last week, rose a further 0.7 percent. Miner Ma’aden jumped 5.3 percent after issuing a statement describing progress in expanding its phosphate and bauxite operations.

Builder Khodari climbed 1.5 percent and Nama Chemicals jumped by its 10 percent daily limit for a second straight day after announcing the outline of a plan to recover from accumulated losses that exceeded 75 percent of its capital. The plan includes eventually increasing capital to finance production of speciality chemical products and boost capacity, and the sale of assets of an investment affiliate.

The Kuwaiti index added 1.3 percent to touch a fresh 26-month high in a broad-based climb and heavy volumes, bringing its rise this month to nearly 21 percent.

On Monday, the government is to announce details of its long-term economic development plan, which could help the stock market if it gives more impetus to big infrastructure projects.

Telecommunications firm Viva Kuwait fell 2.2 percent, however, after reporting a 6.8 percent rise in fourth-quarter net profit to 10.8 million dinars ($35 million); SICO Bahrain had forecast 9.44 million dinars.

Dubai’s index slipped 1 percent as GFH Financial, the most heavily traded stock, plunged by its 10 percent daily limit. The stock, a speculative favorite of local investors, has been very volatile in the past week.

Abu Dhabi’s index dropped 0.8 percent. Another speculative stock, International Fish Farming (Asmak), sank 10 percent to AED2.92 ($0.79).

It had soared from AED1.90 ($0.52) at the end of last month to a peak of AED4.65 ($1.27), partly because of a rumor that a well-known Abu Dhabi individual investor had bought a strategic stake in the company. But in mid-January, an Asmak spokesman told Reuters that the rumor was false and the stock has been falling back since then.

Qatar’s index lost 1 percent because of pullbacks by a few major banks; Qatar National Bank slid 1.4 percent and Masraf Al-Rayan lost 3.4 percent.

Egypt’s index, which had climbed 1.6 percent on Thursday in response to the success of the government’s international bond sale, gained 0.6 percent.

Orascom Telecom, the most heavily traded stock, bounced 8 percent after underperforming the market last week.

Reuters