RIYADH: Gulf stocks were a relative oasis for emerging market investors this week as the broader complex posted its worst month since March 2020 amid concern over the breadth of a Chinese regulatory crackdown.
The Tadawul All Share Index climbed 0.7 percent on July 29 to end the week 1.9 percent higher for a 7.5 percent monthly gain. The Abu Dhabi Securities Market General Index climbed 1 percent on Thursday, taking it to a record high on the back of a 2 percent advance for First Abu Dhabi Bank.
By contrast, the MSCI Emerging Market Index dropped 1.4 percent on Friday, for a 7 percent monthly loss, the most since the fallout from the pandemic hit global markets early last year. Stocks in mainland China and Hong Kong fell to their lowest this year, on investor worries over government regulations dented the education, property and tech sectors.
Brent crude climbed 2.5 percent in the week after a rollercoaster month that saw it swoon from a two-year high of $77.16 on July 5 to $68.62 on July 19 before recovering to end the month at $76.33.
Concerns over the effect a resurgence in coronavirus cases might have on demand for crude were allayed on Wednesday when a report showed a bigger-than-expected drawdown of crude stockpiles the previous week.
“The reduced stockpile has propped crude prices up which gave a boost to the region’s stock markets,” Daniel Takieddine, senior market analyst at FXPrimus, told Reuters.
The Tadawul’s IPO pipeline will advance this month after Saudi burger chain Burgerizzr said it will begin offering shares to the public on Aug. 15 with the intention to list on the parallel stock market Nomu in September.
The company plans to offer 725,000 shares, representing 29 percent of its SR25 million capital, it said in its prospectus on Thursday.
Further signs of the Kingdom’s ambitious investment program were revealed this week as
The Ministry of Communications and Information Technology announced a $15 billion technology fund to advance digital infrastructure in the Kingdom during the Saudi 4th Industrial Revolution conference held in Riyadh this week.
The public-private partnership will develop advanced technology from the Fourth Industrial Revolution (4IR), which is expected to generate around $1 trillion for the Saudi economy in new revenue streams, a senior Saudi official said on Wednesday.
The Kingdom will enjoy economic boosts from robotics, artificial intelligence, and wireless production models as it pushes for more smarter cities and infrastructure.