Saudi gains on economic reform

Dubai: Saudi Arabia’s stock index notched its fourth session of gains yesterday following the announcements of various economic reform plans, while most other bourses lost steam on profit taking. Bahrain index added 0.3 per cent to 1,120 points.

Riyadh’s index nudged up 2 points to 6,607 points.

The Saudi government published a five-year National Transformation Plan (NTP) on Monday, part of a wider set of reforms launched in April as “Vision 2030”.

“Investors are absorbing the impact on various sectors and how to position their funds to capture the best returns over the long term after the announcement of the economic transformation plan,” said a Riyadh-based fund manager.

Shares in Dubai’s Shuaa Capital dropped 2.7 pc, as investors booked profit following its recent price gains. On Wednesday the Islamic investment firm said that Abu Dhabi Financial Group had reached an agreement to buy the 48.36 pc stake of the investment bank held by Dubai Banking Group. The transaction, for which no value was disclosed, is subject to regulatory approvals, it said.

But mid to large cap stocks helped support Dubai’s main index, which closed up 0.5 pc, notching its third session of gains. Air Arabia and Dubai Financial Market, the only listed bourse in the Gulf, gained 2.3 and 1.6 pc respectively.

In Abu Dhabi the bourse was pulled 0.6 pc lower as investors cashed out of blue-chip banks which have been advancing over the last week.

First Gulf Bank and Abu Dhabi Commercial Bank lost 2.5 and 0.7 pc to close at 11.95 dirhams and 6.15 dirhams respectively. 

Similarly in Qatar, the index fell 0.8 pc, snapping a four day winning streak as investors exited shares which have been rising. Ezdan Holding and Qatar National Bank, which together make up more than one third of the total market value, each retreated 1.1 pc.

In Cairo, the main index fell 0.3 pc, but remains near 3 week highs. Pioneers Holding fell 0.5 pc. Yesterday the company said its shareholders approved increasing issued capital by 708 million Egyptian pounds through the distribution of bonus shares.