DUBAI: Saudi Arabia’s stock market closed higher on Sunday, supported by anticipation of upcoming earnings and next month’s opening of the capital market to all categories of foreign investors. Qatar’s benchmark index slipped as investors locked in profits.
The kingdom will open its financial markets to all foreign investors starting February 1, the market regulator said earlier this month, as it relaxes rules to draw more overseas capital. Saudi Arabia’s benchmark index gained 1.2 percent, rising for a third session, led by a 1.8 percent rise in Al Rajhi Bank.
Saudi stocks extended recent momentum on upbeat fourth-quarter earnings expectations and anticipation of February’s opening to foreign investors, said Daniel Takieddine co-founder and CEO, Sky Links Capital Group.
“Additionally, a rebound in oil prices can provide a floor of support for the index, although questions regarding the sustainability of crude’s recovery linger.”
On Friday, oil prices settled up almost 3 percent after rising to their highest in more than a week after Trump ramped up pressure on Iran through sanctions on vessels that transport its oil, and an announcement that an “armada” was heading toward the Middle Eastern nation.
In Qatar, the index dropped 1.3 percent, as all its constituents were in negative territory including the Gulf’s biggest lender Qatar National Bank , which retreated 1.5 percent.
According to Takieddine, even as the fourth-quarter earnings season continues this week, sentiment remains guarded, with investors wary that regional geopolitical tensions could escalate.
Outside the Gulf, Egypt’s blue-chip index gained 0.9 percent, hitting a new record high, with Talaat Moustafa Group Holding advancing 3.5 percent.
Comments