Saudi stock index up, shuns oil prices 

Saudi Arabia’s stock benchmark Tadawul All Share Index jumped 2.3 percent to 7,749 points and most stocks in Riyadh were positive. National Commercial Bank, the kingdom’s top lender, was one of the main supports, jumping 3.2 percent. Another large lender, Al Rajhi, climbed 2.6 percent.

Saudi Arabia’s banking sector may benefit from an expected US interest rate hike in coming months. Demand deposits in the kingdom carry zero interest, and its monetary policy usually follows that of the Fed because the riyal is pegged to the dollar.

“The Federal Reserve Bank may tighten its monetary policy in the fourth quarter this year, which may bode well for the credit margins of Saudi banks given that demand deposits constitute 69 percent of total deposits,” Albilad Capital said in a note on Tuesday.

Dubai’s index rose 1.4 percent to 3,626 points. Developer DAMAC and mortgage lender Amlak Finance were the most traded stocks after DAMAC said it had launched three new projects and signed a deal with Amlak to provide mortgages for buyers of its properties.

Amlak surged 3.8 percent but DAMAC, which had risen as much as 2.2 percent during the day, closed 0.3 percent lower. Abu Dhabi’s bourse added 2.0 percent to 4,502 points as most stocks rose. Telecommunications firm Etisalat surged 4.4 percent and developer Aldar Properties jumped 3.0 percent.

Qatar’s index jumped 2.0 percent to 11,659 points in another broad rally. Conglomerate Aamal Company surged 4.2 percent after announcing the launch of a new subsidiary which will focus on maritime transportation services.

Qatar index added 2.0 percent to 11,659 points. Kuwait index rose 1.6 percent to 5,808 points. Oman index climbed 0.4 percent to 5,803 points. However, Bahrain index slipped 0.1 percent to 1,291 points.

Egypt index climbed 1.8 percent to 7,050 points as many stocks offset the previous day’s losses.

The Cairo market had fallen sharply on Tuesday after the country’s agriculture minister was arrested on suspicion of corruption, with the sell-off largely driven by sentiment rather than fundamentals.

US stocks rose in early trading on optimism that policymakers in Asia will do more to help boost growth in the region. Japan’s stock market logged its biggest gain in almost seven years after comments from the country’s Prime Minister raised expectations of more measures to shore up economic growth.

China’s No. 2 leader said that the nation had no plans to devalue its currency further and suggested that growth remained on track.

The Dow Jones industrial average rose 74 points, or 0.4 percent, to 16,564 as of 10:07 a.m. Eastern time Wednesday. The Standard & Poor’s 500 index climbed 8 points, or 0.4 percent, to 1,977. The Nasdaq composite rose 20 points, or 0.4 percent, to 4,831.

US stocks were rallying a day after logging their second-biggest gain of the year. The advances helped push the major US stock indexes into positive territory for the month. Stocks had slumped last week on concern about the outlook for growth in China, the world’s second-biggest economy.

France’s CAC 40 advanced 2.6 percent. Germany’s DAX rose 1.6 percent. Britain’s FTSE 100 rose 1.9 percent.

The Nikkei 225 soared after comments from Prime Minister Shinzo Abe that raised expectations of more measures to shore up economic growth under his “Abenomics” stimulus program. — SG/Agencies

Source: Saudi Gazette – Saudi stock index up, shuns oil prices

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