Saudi traders gave a muted response to index compiler MSCI’s announcement yesterday that it will begin consultations with international institutional investors on including Saudi Arabia in the MSCI Emerging Markets Index.
Shares on the Tadawul Index closed up 0.53 per cent at 9,541.58.
The earliest date for the kingdom’s inclusion in the index is likely to be mid-2017.
In Dubai, shares rose to their highest level in nearly six weeks. The Dubai Financial Market General Index rose 1.78 per cent to 4,187.25, as fund managers said new money continued to pour into Arabtec Holding, Union Properties and Deyaar Development.
Arabtec, which recorded its highest daily trading volume since August, closed up 12.26 per cent at Dh2.93.
Trading volumes in Union Properties were even higher, with the company’s shares rising 10 per cent to Dh1.32 on volumes of 385 million. Deyaar rose 6.41 per cent to 88 fils.
Amlak Finance hit its upper limits for the sixth day in a row, up 14.78 per cent to Dh2.33.
Fund managers have been at a loss to explain the surge in share prices.
“There are a number of rumours from speculators that the Dubai government is buying up shares in Amlak, and the Abu Dhabi government is similarly supporting Arabtec stock. These same people are then buying the stock to sell it at a higher price,” said a Dubai-based fund manager who did not want to be identified.
jeverington@thenational.ae
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