JEDDAH: ARAB NEWS
Published — Thursday 29 November 2012
Last update 29 November 2012 2:24 am
Attractive valuations brought back buyers to Saudi Arabia’s markets as the Tadawul All-Share Index rose 1.1 percent to close at 6,533 points, lifting from Tuesday’s 10-month low.
Bluechips that were battered in recent sessions, led the market recovery, Reuters reported.
Al-Rajhi Bank gained 0.8 percent, Samba Financial Group rose 1.8 percent and Yanbu National Petrochemical advanced 3.1 percent.
“The rebound is because of the sell-off we’ve seen during most of the week — some of the quality names have been trading low and looked attractive,” Asim Bukhtiar, head of research at Riyad Capital, told Reuters.
Traders told Reuters that the selling this week was almost exclusively by retail investors, while local institutions and foreigners held on to their positions.
Analysts said the economy is growing strongly, with oil prices high and bank lending expanding at double-digit rates.
“The economy has been on a strong footing and we don’t see that changing,” Bukhtiar at Riyad Capital added.
Elsewhere, selling pressure on Egypt’s bourse dragged the benchmark index to a fresh four-month low as institutional investors looked for an exit following nationwide protests.
“Institutional investors want to realize their gains they made throughout the year-they’re looking for an exit but the low volumes are not helping,” Mohamed Radwan of Pharos Securities told Reuters.