JEDDAH: It was a positive day for the Saudi stock market on Monday, with only insurance sector closing negatively.
TASI climbed 0.7 percent to 6,315 points. Sector gains ranged from 0.02 percent in the retail sector to 1.95 percent in the hotel and tourism sector. Overall market breadth was positive, with 67 advancers and 45 decliners giving an AD ratio of 1.49.
“It is encouraging to see today’s gains, which managed to close above the 5-day moving average. This average has proven to be a strong resistance for the market over the past few days, with the market unable to sustain two consecutive closes above it. We hope we will see a positive close above this level tomorrow,” said the daily market report by Jeddah-based Financial Transaction House (FTH).
Meanwhile, gains in Zain shares helped lift Kuwait’s index almost 1 percent on Monday after the bellwether mobile telephone firm had slumped to a seven-month low in the previous session ahead of its earnings report.
Zain, which posted a 53 percent drop in quarterly earnings, advanced 2 percent.
Shares in other companies held by Zain’s parent Al-Kharafi Group also rose. Kuwait Food Co. surged 7.8 percent, and National Investments Co. gained 1.3 percent after falling 17 percent in the past week. But uncertainty surrounding Zain’s future, and the fact that 13 listed companies were suspended for not reporting third-quarter results in time cast doubt on the durability of any upturn in investor sentiment.
Most other Gulf Arab markets also advanced on Monday, with Dubai’s DFMGI gaining 1.6 percent and Qatar’s index QSI rising 1.8 percent. Logistics and courier services provider Aramex jumped 5.2 percent in its largest one-day gain for two weeks.
Aramex is up 15 percent since Nov. 1 and brokers say it has been a recent favorite of foreign investors because it offers diversification away from Dubai’s dominant property and financial sectors.
Abu Dhabi’s index ADI ended slightly lower as a lack of significant market-moving news weighed.