UAE markets up as Saudi stocks recover

dubai - UAE bourses were driven by improved quarterly performance by banks

Saudi Arabia's stock index recovered most of its earlier losses on Monday as Dubai and Abu Dhabi bourses recorded gains, driven by improved quarterly performance by banks.

In Dubai, the benchmark index closed up 0.4 per cent with developer Emaar Properties rising 1.2 per cent and Emirates NBD adding 1.1 per cent while Abu Dhabi's bluechip index saw a 0.3 per cent gain.

With Saudi government-linked funds continuing to bolster the market as concerns about the killing of Saudi journalist Jamal Khashoggi weighed, the main Tadawul index recovered to trade down only 0.2 per cent at 7,648.64 points after falling as much as 3.3 per cent.

The Saudi stock market has lost more than four per cent in value since October 2 because of concerns the Khashoggi case could trigger US sanctions and shrink inflows of foreign investment.

Fresh stock exchange data released on Sunday showed foreigners sold a net SR4.01 billion ($1.07 billion) in Saudi stocks in the week ending October 18 - one of the biggest selloffs since the market opened to direct foreign buying in mid-2015.

World's leading petrochemical producer Saudi Basic Industries Corp reversed losses to gain 1.6 per cent, while Al Rajhi Banking & Investment Corp also ended 1.1 per cent higher.

In Dubai, Mashreqbank jumped 2.9 per cent after reporting a 4.6 per cent rise in quarterly net profit to Dh587 million  on Monday. Abu Dhabi's bluechip index saw a 0.3 per cent gain, aided by a 5.6 per cent jump in Agthia Group and a 0.4 per cent rise in bluechip First Abu Dhabi Bank while Abu Dhabi Commercial Bank lost 1.3 per cent despite reporting a 5.5 per cent rise in quarterly profit on Sunday.

Egypt's blue-chip index added 0.9 per cent, led by a six per cent jump in El Sewedy Electric after receiving initial approval to start negotiations relating to a hydropower project in Tanzania.

- issacjohn@khaleejtimes.com