Telecoms stocks lift Tadawul

The Saudi stock index, which has been tumbling because of concern about the impact of government austerity measures on the economy, gained 0.8 per cent in the first 45 minutes of trade.

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Saudi shares rebounded on Tuesday, experiencing their best one-day performance in more than five months, as telecoms stocks surged following the lifting of a trading suspension.

Abu Dhabi shares rose while Dubai shares ended little changed in thin trading.

Zain KSA was the best performer on the Tadawul on Tuesday, rising by nearly 10 per cent to Dh7.40 after the mobile operator said a new telecoms licensing regime would lower its annual amortisation charge by about 433 million Saudi riyals.

Etihad Atheeb Telecom and Etihad Etisalat, or Mobily, partly owned by the UAE’s Etisalat, rose by 8.3 per cent and 5.5 per cent respectively, following the announcement of similar benefits on Monday.

The Tadawul surged 2 per cent to 5,525.70, its best showing since late April.

The Dubai Financial Market General Index fell 0.07 per cent on the quietest day of trading for five weeks. Du shed 1.3 per cent at Dh6.40, cancelling out a 1 per cent gain by Emaar Properties.

Arabtec shares were unchanged after the developer confirmed it had won a Dh340 million contract to build a five-star hotel in Dubai Internet City.

Shares in Gulf General Investment Co fell 3.1 per cent to 50 fils after the company said it was in discussions with banks to renegotiate part of its debt plan.

The Abu Dhabi Securities Exchange General Index ended up 0.2 per cent at 4,409.05, led in Etisalat, Aldar Properties and ADCB. Shares in FGB and NBAD fell.

ADIB shares closed 1.3 per cent lower at Dh3.60, amid reports the bank had cut more than 200 jobs in the UAE in the past three months.

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