Saudi stock market extends gains as govt payment plan spurs buying
Stock markets in the Gulf went higher at early trade on Tuesday with Saudi Arabian shares heading for a fourth day of uninterrupted gains on positive news from the government’s payment plan to the private sector.
Riyadh’s general market index rose 0.5 percent with contractor Al Khodari, which works extensively on public financed projects, the top gainer after 15 minutes of trade, leaping 6.8 percent, after the government economic body said it was looking at making payments to the private sector, before the end of December.
Although the amount was not stated, the Council of Economic and Development Affairs said in a state news statement that it had also cancelled projects valued at up to 1 trillion Saudi riyals ($266.7 billion).
Saudi Pharmaceutical Industries, the only listed drug producer, gained 2.5 percent, in a second day of heavy trade after energy minister said on Sunday the kingdom plans to develop automotive, pharmaceutical and solar industries.
Petrochemical shares remained robust as Brent oil stalled around $46 a barrel with top producer Saudi Basic Industries adding 0.3 percent.
Banking shares, which have been leading the market higher since the government’s successful $17.5 billion international bond sale last month, were also strong with all but one of the 12 listed lenders advancing. Saudi British Bank was up 1.8 percent.
Abu Dhabi’s index rose 0.6 percent as the largest listed developer Aldar Properties climbed 1.2 percent on its quarterly earnings beat.
Net profit attributable to the Alar’s owners came in at 747.8 million dirhams ($203.6 million) for the three months to Sept. 30, a 17.9 percent increase from year-ago period. Analysts at SICO Bahrain forecast Aldar would make quarterly profit of 480.26 million dirhams and EFG Hermes expected earnings of 682.06 million dirhams.
The largest listed developer in neighbouring Dubai, Emaar Properties, added 0.9 percent, helping lift Dubai’s main index up 0.4 percent.
But small and mid-sized shares were the chief gainers, with builder Arabtec, which has not yet reported quarterly earnings, advancing 2.3 percent.
Telecommunication shares helped lift Qatar’s blue chip index 0.2 percent.
Vodafone Qatar was up 0.9 percent after the affiliate of Vodafone Group, reported a narrowing loss to 63.9 million riyals ($17.6 million) in the three months to Sep. 30. That compares with a loss of 113.6 million riyals in the prior-year period, and the forecast of a 94 million riyal loss from Arqaam Capital.
Competitor Ooredoo, which reported last month a 51 percent slide in quarterly profit, rose 0.7 percent.
Source: Reuters
