Riyadh: Saudi Arabian stocks led gains across most Gulf equities, rising for a third day on optimism the kingdom will make delayed payments to companies after it raised a record $17.5 billion from its debut international bond sale.
The Tadawul All Share Index added 1.1 per cent in Riyadh to 5,711.37, set for the highest level in a month. Dar Al Arkan Real Estate Development was the most-traded stock after it posted an increase in quarterly profit for the first time in a year. Dubai’s DFM General Index and Abu Dhabi’s ADX General Index each added at least 0.6 per cent.
Saudi Arabia, the Arab world’s largest economy, sold the biggest ever foreign bond from an emerging-market nation last week and vowed to increase payments to contractors, sparking a stock rally that boosted the exchange by about $12 billion. The kingdom’s benchmark index is one of the world’s worst performers this year as the country implements a series of austerity measures to improve its finances after the price of oil, its main source of income, plummeted.
“We’re seeing a general recovery after the events last week,” said Nabil Rantisi, the managing director of Abu Dhabi-based Mena Corporation Financial Services, one of the biggest brokerages in the United Arab Emirates. “There are many stocks that are trading at some good levels that could benefit. Banks, for example, are attractive. Investors are looking for good opportunities now.”
National Commercial Bank (NCB), whose price-to-earnings ratio dropped to the lowest level since the stock began trading almost two years ago, climbed 2.7 per cent and was the biggest contributor to the Tadawul’s advance.
Dar Al Arkan rose 7.7 per cent, the steepest jump since July, as traders exchanged 27 million shares. The Riyadh-based real estate developer posted a 21 per cent gain in third-quarter profit to 112.5 million riyals ($30 million), citing an increase in property sales.
The Bloomberg GCC 200 Index, a measure of the largest and most liquid companies in the Gulf Cooperation Council, a group of six nations including Saudi Arabia, climbed 0.6 per cent. Kuwait’s Price Index advanced 0.1 per cent. Bahrain’s Bourse All Share Index declined 0.7 per cent, Oman’s MSM 30 Index lost 0.4 per cent and Qatar’s QE Index slid 0.1 per cent.