Saudi Arabia’s index (TASI), the largest Gulf Arab market,
rose 0.2 percent, having surged 4.5 percent on Sunday, with regional markets
rallying after the kingdom offered SR500 billion in social handouts in a bid to
neuter dissent.
The Saudi market closed at 6357.37 points after gaining 13.58
points. The sector activity for the day was all positive except two losing
sectors.
The gaining sector ranged from 0.02 percent by the
industrial investment sector to 1.72 percent by the real estate development
sector. On the other hand the losing sectors were the telecommunication and
information technology sector and the banks and financial services sector with
-0.27 percent and -0.29 percent.
The overall market breadth for the day was positive with 88
advancers against 41 decliners giving it an AD ratio of 2.14. The liquidity for
the day reached SR4.52 billion, the Financial Transaction House (FTH) —
licensed by the Capital Market Authority — said in its daily market report.
“I think we will have a day or two more to go, but then
questions will start to come about the time frame for the Saudi stimulus and
the costs associated to waste at the bureaucratic level,” said Robert McKinnon,
ASAS Capital chief investment officer. “Much of the stimulus is going to the
people that are happy and have jobs, or own companies and land. I don’t see any
intent at actual reform.”
Market bellwether Saudi Basic Industries Corp. (SABIC) rose
0.5 percent, but lender Samba Financial Group fell 0.9 percent.
“Attention toward stock and sector fundamentals remain
distracted, with big-picture geopolitical events in Libya, Yemen and Bahrain
dominating investor’s minds,” said Amro Halwani, a senior trader at Shuaa
Capital in Riyadh.
“Whilst most markets across the GCC fret over the escalation
of tensions, at least Saudi investors have the reassurance of massive
government financial intervention, and therefore presumably a sensible floor
under equity prices.”
Abu Dhabi’s index rose for a second day, climbing 0.5
percent, but Dubai’s benchmark ended a three-session rally, slipping 0.2
percent.
National Bank of Abu Dhabi and First Gulf Bank add 2.2 and
1.6 percent respectively.
Property-related stocks weighed on Dubai, with contractor
Drake & Scull and builder Arabtec sliding 1 and 2 percent respectively.
“Markets are at very attractive levels — now is a good time
to accumulate, but one should always be aware of political risk,” said Adel
Nasr, United Securities brokerage manager.
Kuwait’s index climbed 1 percent on slim volumes. “There’s a
lot of volatility, with the market fluctuating and no clear trend because of
the security situation in the region, Zain and the large number of companies
that have yet to report their full-year results,” said Naser Al-Nafisi, general
manager for Al Joman Center for Economic Consultancy in Kuwait. Telecom
operator Zain rose 1.5 percent.
Oman’s index climbed 0.2 percent in its third straight gain,
while Bahrain’s measure added 0.7 percent. Qatar index fell 0.6 percent.
