DUBAI: Saudi Arabian equities closed higher on Sunday, recovering from the previous session’s decline that ended a six-day rally, although investors stayed cautious amid soft oil prices.
Saudi Arabia’s benchmark index gained 0.9 percent, with ACWA Power Company rising 3.9 percent and Saudi Arabian Mining Company up 1.5 percent.
The upward momentum was triggered by the government’s announcement that it would liberalize capital market access for foreign investors, starting next month.
Macroeconomic conditions generally also remain supportive, with the non-oil sector growing by more than 4 percent amid sustained government investment in projects linked to the Vision 2030 economic development programme.
Foreign capital inflows totaling tens of billions of riyals over the past year have deepened market liquidity and mitigated volatility, said Rania Gule, senior market analyst at XS.com – MENA.
“I expect the Saudi market to trade within a sideways range in the near term, with a mildly positive bias, while upside momentum could gradually return if oil prices stabilize and companies deliver strong quarterly earnings, particularly in the banking, energy and telecommunications sectors.”
The Qatari index added 0.5 percent, led by a 0.8 percent rise in petrochemicals maker Industries Qatar.
Outside the Gulf, Egypt’s blue-chip index advanced 1.4 percent to a record high, as almost all its constituents were in positive territory, including Egypt Aluminum, which leapt 6.6 percent.
Gule said the uptick reflects stronger risk appetite, driven by economic reforms and greater exchange-rate flexibility, adding that expectations of upcoming government initial public stock offerings and corporate market listings have reinforced positive sentiment and enhanced market depth.
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