Saudi stocks register non-stop rally for 5th day
Published: 17:33 October 25, 2016
Dubai: Saudi Arabia’s Tadawul index rose on Tuesday, gaining for a fifth session to hit its highest level in a week on optimism there was value left in the underperforming regional index.
The Tadawul index closed 1.48 per cent higher at 5,882.44, after hitting a high of 5,883.41. Gains in the previous four sessions have cut down the year-to-date losses to 14 per cent. This compares with a more than 2 per cent gain on Dubai index.
“The index is on a reversal, Today we breached the high of last time, which is a good sign. We are more bullish on Saudi than before,” Ahmad Waheed, Vice President — Institutional Desk, Menacorp said.
Analysts said the Tadawul index has breached over the 50-day moving average, indicating bullish trend. Most of the traders who had been sitting on cash have been investing looking at the opportunity.
Alinma Bank closed 2.02 per cent higher at 13.15 Saudi riyals. Saudi Kayan Petrochemical Co. closed more than 2 per cent higher at 6.60 Saudi riyals. Saudi Basic Industries Corp closed 1.31 per cent higher at 85.25 riyals.
The Dubai Financial Market General Index closed 0.67 per cent lower at 3,336.76. “From a broad perspective, we are seeing a little bit a sell-off in select stocks in Dubai, but the index is relatively stable,” said Waheed, adding “if the index breaches 3,400 levels, the gauge would turn bullish.”
Dubai Entertainments closed more than 1.8 per cent lower at Dh1.60. Gulf Finance House closed 0.86 per cent higher at Dh1.17. Dubai Islamic Bank closed less than a per cent lower at Dh5.28. Out of a total of 37 stocks traded on the exchange, shares of 19 firms rose, while other 11 fell. The Abu Dhabi Securities Exchange General Index closed 0.58 per cent lower at 4,264.44.
Elsewhere in the region, the Qatar exchange index closed 0.02 per cent lower at 10,404.19. The Kuwait Stock Exchange index closed 0.89 per cent higher at 5,389.01.