Tadawul index rises slightly
Tadawul index rises slightly
The Tadawul All-Share Index (TASI) started a sideways walk along the break even line earlier yesterday, reflecting a narrow trading range (38.3 points) ended at 6,729.19, up 12.73 points or 0.19 percent for the entire day.
Sectoral performance was positive, as 9 out of the 15 sectors closed in upward territory, accumulating an aggregate of over 239 points. While, six sectors ended in red, paring 122 points jointly.
Media and Publishing sector outperformed among all sectors, reflecting a growth of 1.29 percent for the day. Retail sector added roughly 78 points or 1.07 percent to close at 7,385.83, ranked second.
The total number of falling stocks exceeded to the total number of rising stocks by a margin of 71 to 62 and the prices of 22 companies remained unchanged.
AXA Cooperative Insurance Company showed the best performance among all Saudi stocks, surging by 7.28 percent to close at SR 48.60.
SABIC (Saudi Basic Industries Corp.) played well among big players, marching higher by 0.84 percent to close the day at SR 89.5. The market leader continued securing its first position in term of value, reflecting a turnover of SR 405.7 million.
Furthermore, the volume chart was led by Dar Al-Arkan Real Estate with trades of over 28.4 million shares.
Saudi Arabia’s economy in a ‘sweet spot’, says US bank
- Bank of America Merrill Lynch Global Research: “With a more entrenched current account surplus possible this year, FX reserves could increase.”
- “Reforms are likely to broadly proceed, even at these levels of oil prices, although spending may increase further above baseline expectations.”
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.