Saudi Arabia’s stock market extended on the previous session’s rally on Thursday as investors focused on shares likely to benefit from economic reforms and from MSCI’s decision.
The Tadawul index added more than 1.2 per cent to reach a 20-month high of 7,425.72 points in heavy trade.
It is now up 6.8 per cent in reaction to the appointment of the architect of economic reform, Mohammed bin Salman, to crown prince.
Some shares which were top gainers on the previous day continued to rally with the only listed miner, Saudi Arabian Mining, surging 9.4 per cent. The new crown prince had previously stressed the importance of expanding the mining sector to diversify the economy from oil. Banks were also strong with government-majority owned National Commercial Bank gaining 4.6 per cent, extending on Wednesday’s 10 per cent surge.
Abu Dhabi’s index fell nearly 0.6 per cent as Eshraq Properties, the most traded stock, lost 8.7 per cent. Yesterday the company said it will meet on July 5 to ratify the sale of its shares in real-estate investment fund Ward Holding.
Dubai’s index fell 0.5 per cent. Shares of the most traded stock GFH Financial, not included in the emirate’s headline index, slumped 8.9 per cent. On Wednesday the company said that Integrated Capital (IC), owned by Abu Dhabi Financial Group, transferred its 21 million shares in GFH to Ajman Bank. IC will remain “beneficial owner” with a 13.38 per cent stake.
Gulf stock markets will be closed as of Sunday for Eid Al Fitr holiday with Saudi Arabia and Qatar’s bourses announcing they will resume trading on July 2.
* Reuters
