Saudi Arabian stocks lift Gulf markets after Eid

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DUBAI: Saudi Arabia and Dubai led Gulf stocks higher on Sunday as regional markets resumed trade after last week’s holidays, lifted by positive sentiment on global stocks and expected foreign fund inflows into the Riyadh market.
The Saudi index rose by 2.2 percent to finish at 8,699 points, its best close since May 9.
“The market is bouncing back after the correction experienced in the past few weeks,” said Riyad Capital’s Muhammad Faisal Potrik.
Global stock markets advanced and US Treasury yields tumbled on Friday after a slowdown in job growth fueled hopes of a cut to US interest rates while there were also hints of progress in Washington’s trade battles.
Al Rajhi Bank rose 3.2 percent, Saudi Telecom was up 3.4 percent and Saudi Basic Industries, the index’s biggest stock, gained 2.9 percent.
Late last month the Saudi equity market joined the MSCI Emerging Market index, which is expected to trigger billions of dollars of foreign fund inflows.
A third tranche of the FTSE Russell emerging market index will kick in this month after Saudi stocks were included in two tranches in March and April.
The Dubai index also rose, firming by 1.2 percent as property stocks registered strong gains. Damac Properties was up 9.3 percent and Union Properties rose 4.3 percent. Market heavyweight Emaar Properties was up by a more modest 0.7 percent.
Global Telecom was up 1.5 percent after the company announced it has postponed its shareholder meeting to provide more time for investors to consider the mandatory tender
offer submitted by major share-holder VEON.
Abu Dhabi’s index dropped 0.95 percent, on weakness in First Abu Dhabi Bank, which eased by 1.2 percent.

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