Saudi stock market rises in early post-Eid trade

Saudi Arabia’s stock market rose in early trading on Sunday, the first day many Middle Eastern bourses re-opened after the Eid al-Fitr holiday, while the performance of other regional exchanges were mixed.

The main Tadawul index rose 0.8 percent, with most blue chip stocks higher, including Al Rajhi Bank and Saudi Basic Industries Corp, which were 2.6 percent and 0.3 percent higher respectively.

Saudi Arabia’s midcaps were also broadly firmer on the first day of trading since June 30, led by Fawaz Alhokair and Dar Al Arkan which jumped respectively 4.3 percent and 7 percent.

Al Tayyar Travel Group was up 2.8 percent after it announced an agreement with Starwood Hotels to rebrand a recently-refurbished hotel in the holy city of Mecca as a Sheraton.

Egypt’s bourse, closed for the last three days of last week, rose 3 percent on the back of gains in global markets.

Elsewhere, Abu Dhabi’s exchange was 0.3 percent lower, even though there is speculation about more mergers and acquisitions activity in the emirate after a spate of big deals, including a proposed merger of First Gulf Bank and National Bank of Abu Dhabi.

Union National Bank was 3.9 percent higher, and Abu Dhabi National Energy Company up 3.9 percent, taking their gains in the past four sessions to 14.3 percent and 10.2 percent respectively.

Both are seen as among the most plausible candidates for consolidation, following confirmation last week that the boards of National Bank of Abu Dhabi and First Gulf Bank had agreed to a merger. These two banks were down 1 percent and 0.4 percent respectively on Sunday.

Their proposed deal followed days after the government ordered a tie-up between state investment funds Mubadala and International Petroleum Investment Company.

Dubai’s bourse was marginally higher, led by a 3.5 percent rise in construction firm Arabtec. Oman’s stock market was also slightly higher.

Kuwait’s exchange was down 0.3 percent, weighed down by a 1.7 percent decline in heavyweight National Bank of Kuwait .

Source: Reuters