Saudi shares up after PMI shows solid growth in May

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Saudi Arabia’s stock market rose yesterday after a survey showed that non-oil private sector continued its strong growth in May as demand withstood rising output costs.

The seasonally adjusted S&P Global Saudi Arabia Purchasing Managers’ Index (PMI) for the whole economy was steady at 55.7 in May, the same as in April, which was its lowest reading since January and below the series average of 56.8.

Employment growth dipped marginally but remained in growth territory, where it has been since April 2021, excluding March this year.

Saudi Arabia’s benchmark index rose 0.4pc with oil giant Saudi Aramco advancing 1.1pc, while Al Rajhi Bank was up 0.5pc. Among other stocks, ACWA Power also jumped 1.3pc after saying it signed a 401 million riyal ($106.91 million) contract to develop and operate the 91 MW Layla solar PV project.

In Qatar, the index, gained 0.1pc, as petrochemical maker Industries Qatar increased 0.7pc and Sharia lender Masraf Al Rayan was up 0.6pc. Outside the Gulf, Egypt’s index fell 0.2pc after a disappointing purchasing managers’ survey.

The S&P Global Egypt Purchasing Managers’ Index strengthened to 47.0 from April’s 46.9, but still remained below the 50.0 threshold that separates growth from contraction.

The country’s non-oil private sector activity contracted for an 18th month in May as the Ukraine crisis, import restrictions and a devalued currency put pressure on prices. However, Ezz Steel, Egypt’s largest steel producer, rose 4.6pc after reporting its first quarter results.