Saudi banks rally on central bank monetary action

Riyadh’s main index ended the day 0.7 per cent higher. UAE markets were little changed.

Saudi shares had their best day in three weeks yesterday after the kingdom’s central bank moved to address a liq­uidity shortage in the financial system.

UAE markets were little changed.

The Tadawul ended the day 0.7 per cent higher, following the announcement by the Saudi Arabian Monetary Agency (Sama) that it would give banks about 20 billion Saudi riyals of time deposits “on behalf of government entities”.

Shares in Rajhi Bank and NCB gained more than 2 per cent.

The move by Sama, announced on Sunday evening, comes ahead of Saudi Arabia’s first international bond sale, expected by the end of the year.

The Dubai Financial Market General Index was little changed yesterday, closing up less than 0.1 per cent at 3,492.96.

Damac Properties and Emaar Properties were the main gainers, closing up 1.3 and 0.2 per cent, respectively.

Arabtec Holding, meanwhile, closed 1.9 per cent lower a day after it emerged that Abu Dhabi’s Tasameem Real Estate had acquired an 8.2 per cent stake in the company.

Drake and Scull International and Dubai Parks and Resorts also ended lower.

In the capital, the Abu Dhabi Securities Exchange General Index closed 0.1 per cent lower at 4,492.22, even as more stocks ended higher than in negative territory.

Banking stocks dragged the index lower on a quieter-than-average day of trading, with FGB, UAB and ADCB all declining. NBAD and Aldar Properties were the pick of the gainers.

The Qatar Exchange closed up 0.7 per cent, its third consecutive day of gains, led by QNB and Industries Qatar.

jeverington@thenational.ae

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Published: September 26, 2016 04:00 AM

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