JEDDAH: Saudi Arabia’s Tadawul All-Share Index rose 1.1 percent on Wednesday as investors accumulated shares in companies set to benefit from economic reform plans, while oil hitting fresh 2016 highs buoyed investor mood across the region.
Saudi Arabia’s Dar Al-Arkan Real Estate Development Co. jumped 9.2 percent to SR5.95, surging by its daily limit for a second straight day.
After the market close on Tuesday, the developer said it was in talks with the government to provide housing under the Kingdom’s economic reform plan.
Emaar Economic City also said it was in talks with the Housing Ministry to build homes for Saudi citizens, and its shares surged 8.6 percent.
The Saudi government published a five-year National Transformation Plan (NTP) on Monday, part of a wider set of reforms launched in April as “Vision 2030.”
The plan, which sets targets for government agencies and also includes spending on new initiatives in health care, mining and renewable energy, will cost an estimated SR270 billion ($72 billion) to implement. Finance Minister Ibrahim Al-Assaf said on Tuesday it will partly be paid for by making public sector efficiency savings and cutting spending on existing projects.
It also targets increasing the percentage of Saudi families that own homes to 52 percent by 2020 from the current 47 percent and cutting the waiting period to obtain housing financing to five years by 2020 from 15 years at present.
Also benefiting from the planned economic reforms, Al-Tayyar Travel Group jumped 3.1 percent to SR39.70. The company, which offers religious tourism services in the kingdom, is set to benefit from a push to expand the role of tourism and hospitality sector in the economy, as outlined in the plan.
Petrochemical shares were also strong, with the sub-index gaining 1.4 percent as Brent crude prices hit fresh 2016 highs.
Dubai’s Shuaa Capital jumped 5.7 percent after it confirmed in a bourse statement on Wednesday that Abu Dhabi Financial Group had reached an agreement to buy the 48.36 percent stake of the investment bank held by Dubai Banking Group.
Dubai’s main index rose 0.8 percent as winners outnumbered losers 18-to-four. Blue chips Emaar Properties and DAMAC Properties closed up 1.3 and 3 percent respectively.
Saudi Arabia’s Dar Al-Arkan Real Estate Development Co. jumped 9.2 percent to SR5.95, surging by its daily limit for a second straight day.
After the market close on Tuesday, the developer said it was in talks with the government to provide housing under the Kingdom’s economic reform plan.
Emaar Economic City also said it was in talks with the Housing Ministry to build homes for Saudi citizens, and its shares surged 8.6 percent.
The Saudi government published a five-year National Transformation Plan (NTP) on Monday, part of a wider set of reforms launched in April as “Vision 2030.”
The plan, which sets targets for government agencies and also includes spending on new initiatives in health care, mining and renewable energy, will cost an estimated SR270 billion ($72 billion) to implement. Finance Minister Ibrahim Al-Assaf said on Tuesday it will partly be paid for by making public sector efficiency savings and cutting spending on existing projects.
It also targets increasing the percentage of Saudi families that own homes to 52 percent by 2020 from the current 47 percent and cutting the waiting period to obtain housing financing to five years by 2020 from 15 years at present.
Also benefiting from the planned economic reforms, Al-Tayyar Travel Group jumped 3.1 percent to SR39.70. The company, which offers religious tourism services in the kingdom, is set to benefit from a push to expand the role of tourism and hospitality sector in the economy, as outlined in the plan.
Petrochemical shares were also strong, with the sub-index gaining 1.4 percent as Brent crude prices hit fresh 2016 highs.
Dubai’s Shuaa Capital jumped 5.7 percent after it confirmed in a bourse statement on Wednesday that Abu Dhabi Financial Group had reached an agreement to buy the 48.36 percent stake of the investment bank held by Dubai Banking Group.
Dubai’s main index rose 0.8 percent as winners outnumbered losers 18-to-four. Blue chips Emaar Properties and DAMAC Properties closed up 1.3 and 3 percent respectively.
