Saudi stocks rise after Eid holiday

Updated 04 November 2012

Saudi stocks rise after Eid holiday

The Tadawul All-Share Index (TASI) advanced a little from earlier levels to 6,800.82 yesterday.
The TASI spending most of the session in the red territory and within a range of 36 points finally crossed the break-even line, adding 9.77 points or 0.14 percent.
Micro cap with 1.86 percent upward jump remained prominent among market cap indices.
Sectoral performance was positive, with ten sectors accumulating an aggregate of 550 points. Insurance came out as the key performing sector, rising by 3.4 percent to close at 1,491.03.
Hotel & Tourism and Transport sectors followed it, moving up by 2.82 percent and 2.58 percent respectively.
Six out of top ten market cap companies ended the day in green.
Etihad Etisalat Co. (Mobily) and Saudi Arabian Mining Company performed well relatively, achieving a growth of 1.03 percent and 0.62 percent respectively.
However, Al-Rajhi Bank and Riyad Bank slipped 0.7 percent to close at SR 69.75 and SR 22.9 respectively.
Market breadth was positive, whereby 94 symbols closed in green and 42 closed in red, while 19 remained unchanged.
Wataniya Insurance Company continued its upward march, surging 10 percent further to close at SR 137.5. An appreciation of nearly 40 percent in the value of Wataniya has been recorded in four consecutive trading days.
Dar Al-Arkan Real Estate continued to dominate the trading activity at Tadawul.
Roughly 25 million shares of the company were liquidated yesterday, which reflected a 16.8 percent relative market share.

Saudi Arabia’s economy in a ‘sweet spot’, says US bank

Updated 3 min 55 sec ago

Saudi Arabia’s economy in a ‘sweet spot’, says US bank

LONDON: The Saudi Arabian economy is in a “sweet spot”, with higher oil prices allowing the Kingdom to boost spending while not having a significant impact on the country’s fiscal balance, according to Bank of America Merrill Lynch Global Research.

“Our meetings on Saudi Arabia comfort us in our view that the economy is in a sweet spot. Higher oil prices are allowing the focus on boosting activity not to materially impact fiscal balances,” the note said, published following the IMF and World Bank Spring meetings held in Washington DC this month.

“With a more entrenched current account surplus possible this year, FX reserves could increase this year,” the note said.

The bank forecasts the country will continue to push forward with its reform process regardless of the rising price of oil. Many of Saudi Arabia’s reforms are part of its Vision 2030 that aims to diversify the country’s economy away from its reliance on oil.

Brent oil reached a three-and-a-half year high on 19 April, hitting $74.74 a barrel.

“Reforms are likely to broadly proceed, even at these levels of oil prices, although spending may increase further above baseline expectations,” the note said.

The bank was also upbeat about Egypt’s economic prospects, noting that the country’s “macro stablization” is continuing and that its reform program, which includes cutting fuel subsidies and reforming the tax system, remains “intact”.

“Authorities are on track to achieve a small 0.2 percent of GDP primary surplus this fiscal year. The target is to bring the primary surplus to 2 percent of GDP next fiscal year, and maintain it there going forward,” it said.