Shares in Saudi Arabia surged to a two-month high yesterday, as investors bet on the country’s likely inclusion today on the MSCI watch list for reclassification to emerging market status.
UAE stocks were mixed, while the Qatar Exchange fell for a second day.
In Saudi Arabia, the Tadawul closed up 2.4 per cent at 7,046.53, its highest close since April.
The country is widely predicted to be placed on MSCI’s watch list for inclusion in its widely tracked Emerging Markets Index, with an upgrade coming as early as 2019.
“The upgrade to emerging markets would be a big move for Saudi Arabia, that will lead to large numbers of foreign investors coming into the country for the first time,” said Ali Adou, director of asset management for The National Investor in Abu Dhabi.
Al Rajhi Bank and Sabic led gains, closing up 5.2 per cent and 1.6 per cent, respectively.
The Dubai Financial Market General Index closed up about 0.4 per cent at 3,458.37, thanks to gains by Emaar Properties and Emaar Malls.
Shares in National Cooling, known as Tabreed, led gains in percentage terms, rising 14.6 per cent to Dh2.12, following the announcement of a Dh2.8 billion investment by France’s Engie.
Du and DFM led losses, both closing down 1.7 per cent.
The Abu Dhabi stocks index closed about 0.2 per cent lower at 4,491.29, with gains by ADCB and Aldar Properties cancelled out by falls by Etisalat and Dana Gas.
In Doha, the Qatar Exchange fell for the second day in a row, closing 1.3 per cent lower on losses by QNB and Industries Qatar.
jeverington@thenational.ae
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