Saudi stock market rises on financials, oil prices
Saudi stock market rose in early trade on Wednesday in a boost mainly from financial stocks and a recovery in oil prices, while Dubai extended losses on falling bank and property shares.
Oil prices recovered some ground, having touched their lowest in close to a month in the previous session on fears over a weakening global economy.
Saudi Arabia’s index traded 0.7 percent higher, offsetting its losses in the previous session, as all banking shares rose. Al Rajhi Bank added 1.4 percent, while National Commercial Bank rose 0.8 percent.
Growth in Saudi Arabia’s non-oil private sector improved slightly in August as output increased, backed by stronger domestic demand, a survey showed on Tuesday.
Saudi gym network operator Leejam Sports gained 0.4 percent after it announced a 0.5 riyal per share dividend for the second quarter.
The Dubai index slid 0.5 percent, extending losses from the previous session in a downturn led by financial and real estate shares.
Dubai’s largest lender, Emirates NBD, dropped 1.5 percent following two days of gains sparked by news that the bank had raised its foreign ownership limit to 20 percent from 5 percent.
In real estate, Emaar Properties, the emirate’s largest listed developer, shed 0.8 percent and Damac Properties lost 1 percent.
Heavy oversupply in the property market, an important sector of Dubai’s economy, has seen residential prices slide by at least a quarter since mid-2014.
On Monday, Dubai set up a real estate planning commission to regulate projects and avoid competition between semi-government and private firms, in a move designed to address the property slump.
Arabtec Holding gained 0.6 percent, however, after the contractor said it was willing to explore cooperation with Trojan Holding in the construction sector.
The Abu Dhabi index traded 0.2 percent higher. First Abu Dhabi Bank , the United Arab Emirates’ largest lender, gained 0.5 percent.
The Qatari index fell 0.8 percent, snapping a four-session winning streak, as market heavyweight Industries Qatar lost 2.5 percent and Qatar Islamic Bank dropped 1.4 percent.
Source: Reuters
