Saudi Stocks Retreats Across Gulf Equity

Saudi Arabian shares led recovery across Gulf equities as trading volumes declined. Among the six-nation Gulf Cooperation Council (GCC), four of which has seen slumps, with analysts saying that GCC 200 Index controlled its longest declining streak in two months. 

  

Tadawul All Share Index of Saudi Arabia lost about 0.9 percent in Riyadh, as trading volumes were cut by 38 percent, dropping below the average. DFM General Index of Dubai dipped 0.8 percent as 123 million stocks were changed hands, which posted below the six-month average, according to reports.  

“After last week’s excitement fueled by foreign inflows, with a few exceptions, things are dull today,” said Akber Khan, who manages $850 million as senior director of asset management at Al Rayan Investment in Doha. “It’s a Sunday in the midst of summer with few results in the region. Volumes are unsurprisingly poor.”

Stock measures in the countries of Dubai, Abu Dhabi, Qatar and Kuwait issued a third week of advances in five consecutive gains through Thursday’s session as prospects for stimulus in large economies fueled demand for riskier emerging-market assets.

Market players remained cautious after the Bank of Japan (BOJ) has overruled the financing government debt and the European Central Bank remained vulnerable in a monetary expansion.

GCC slump on Sunday were followed by declines in oil prices, with Brent crude dropping about 4 percent in the week to end the session at $45.69 per barrel. The GCC is considered as the third world’s proven oil reserves and equities are much relative to crude prices.   

Saudi Arabia Posts Lower

Saudi Arabia shares edge lower during the course of Monday’s session, fueled by declining shares in the sectors of Energy & Utilities, Financial Services and Insurance.

The Tadawul All Share lost about 0.11% in late trade in the country.

Among the best performers of the Tadawul All Share were Saudi United Cooperative Insurance, which rallied by about 6.83% or 1.00 points to changed hands at 15.65 in late trade. Meanwhile, Arabian Pipes Company gained 6.09% or 0.85 points to settle at 14.80 and Malath Cooperative Insurance Co has seen a 3.49% increase or 0.55 points to end at 16.30 at the close.   

Bupa Arabia for Coop. Insurance is one of the worst performers amid session, which lost about 4.62% or 6.00 points to changed hands at 123.75 in late trade. Al Hammadi Co dipped 3.21% or 1.30 points to settle at 39.20 and Emaar The Economic City fell 2.51% or 0.35 points to 13.60 at the close. 

  

Advancing stocks outnumbered dropping ones on the Saudi Arabia Stock Exchange with a range between 84 to 64 and 22 remained unchanged.

Crude oil for delivery in September lost about 1.61% or 0.71 to end at $43.48 a barrel. In commodities trading, Brent oil October delivery dipped 1.41% or 0.65 to settle at $45.44 a barrel, while Gold contract in December fell 0.61% or 8.10 to changed hands at $1323.40 a troy ounce.  

EUR/SAR fell 0.05% to 4.1155, while USD/SAR lost about 0.02% to 3.7506.

The US Dollar Index gained 0.09% at 97.50.

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