SAUDI GAZETTE 25th Feb- JEDDAH – Saudi Arabia’s bourse rose to a 67-month high on Monday as investors shifted funds towards real estate shares, while most other regional markets closed on a positive note. Stock benchmark Tadawul All Share Index advanced 0.37 percent to close at 9,057.08 points.
The Saudi real estate sector’s index gained 3.7 percent; developer Jabal Omar jumped 5.5 percent. Investors tend to shift from blue chips after earnings season towards other sectors that may have more upside.
Petrochemical shares edged up with Saudi Basic Industries Corp (SABIC) climbing 0.2 percent.
“Saudi petchems are trading at reasonable valuations – they should do well in the medium term with good dividend support,” said Nitin Garg, petrochemical analyst at SICO Bahrain.
“Product prices will remain strong because supply is limited and demand is growing. SABIC and Tasnee (National Industrialization ) are trading at attractive valuations, while others are at fair prices.”
The wider index climbed 0.4 percent to its highest level since July 2008.
Elsewhere, In the United Arab Emirates, Dubai’s bourse recovered sharp losses driven by profit-taking to end flat at 4,124 points, bouncing from an intra-day low of 4,026 points.
Dubai index edged up 0.02 percent to 4,124 points, while Abu Dhabi gained 0.2 percent to 4,883 points.
Bahrain index rose 0.8 percent to 1,387 points and Qatar index ticked up 0.1 percent to 11,900 points.
However, Kuwait index slipped 0.5 percent to 7,693 points, along with Oman losing 0.4 percent to 7,109 points.
Egypt’s index climbed 0.5 percent to 8,046 points.
Abu Dhabi’s bourse came off lows to gain 0.2 percent. After soaring in the past 12 months it is now moving sideways, and Powers expects it to remain choppy for the time being.
Kuwait’s bourse retreated 0.5 percent, slumping to its lowest level since Jan. 19 in its fourth straight loss, ahead of a three-day public holiday.
Kuwait-listed shares in Bahraini firm Gulf Finance House slipped 1.6 percent, although the company posted fourth-quarter net profit that more than doubled. Its Bahrain-listed shares tumbled 6.5 percent.
In Qatar, Gulf International Services (GISS) surged 8.9 percent to a record high after its board proposed a full-year dividend of 2 riyals per share, up from 1.5 riyals in 2012. GISS was the main support for the Qatari index, which ticked up 0.1 percent to a 67-month high.
Cairo’s benchmark advanced 0.5 percent, closing above the psychologically important level of 8,000 points for a second session. Real estate firm Amer Group jumped 10 percent. – SG