Tadawul: Banking stocks gain strength

JEDDAH: Saudi Arabia’s Tadawul All-Share Index was nearly flat on Tuesday as banks offset losses in other sectors.
National Commercial Bank and Al-Rajhi climbed 1.4 percent each and were the main support for the market ahead of this week’s meeting of the US Federal Reserve, which could result in a rise in interest rates.
The Saudi riyal is pegged to the dollar, so Riyadh is very likely to adjust interest rates as well, boosting banks’ margins.
Markets in the UAE rose as local telecommunications company Etisalat climbed 1.8 percent in its highest daily trading volume on record, having opened up to foreign and institutional investors.
The Abu Dhabi stock exchange, where Etisalat is listed, edged up 0.4 percent.
As the biggest listed company in the UAE, Etisalat is now very likely to secure a place in emerging market indexes, attracting global funds.
Previously, only local retail investors could buy the stock.
Dubai’s benchmark stock index rose 0.7 percent, supported by a rebound in a number of stocks after several days of declines. Property developer DAMAC jumped 3.5 percent ahead of a shareholder meeting later in the day which will vote on the firm’s first cash dividend since it listed in Dubai in January.
Other Gulf markets were soft. Qatar edged down 0.3 percent, Kuwait fell 0.6 percent and Oman was down 0.4 percent.
Egypt’s stock market rose for a third day in a row, supported by foreign inflows, while Gulf markets were mixed as oil prices remained volatile. The Cairo index edged up 0.2 percent as Commercial International Bank, the country’s biggest listed lender, rose 1.0 percent to 51.00 pounds.