DUBAI: The Saudi stock market edged lower on Thursday as investors locked in profits from the previous day’s strong rally, driven by news of potential reforms to foreign ownership rules, while markets in UAE and Qatar extended losses on broad weakness.
Saudi’s benchmark index slipped 1 percent, retreating from its largest single-day gain in over five years recorded on Wednesday. However, the gauge notched a third straight weekly rise, bolstered by strength in financial stocks.
The Saudi markets regulator is considering lifting the current 49 percent cap on foreign ownership of listed companies, “a move that could unlock over USD10 billion in foreign inflows and prompt MSCI to raise the Foreign Inclusion Factor for Saudi stocks,” said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.
Shares of Saudi Aramco declined nearly 3 percent. Aramco’s talks to acquire a minority stake in Spanish energy firm Repsol’s renewables unit has hit an impasse over a potential 1 billion euro (USD1.2 billion) investment, two sources familiar with the matter told Reuters.
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