*** ----> Petchems lift Saudi as global trend pulls region up slightly | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Petchems lift Saudi as global trend pulls region up slightly

Dubai : Most Middle Eastern stock markets rebounded yesterday, with Saudi Arabia leading the recovery on the back of petrochemical stocks, as global equities and oil prices regained some strength after last week’s tumble.

The Saudi index surged 1.3 per cent as all 14 petrochemical stocks rose. The biggest, Saudi Basic Industries , added 1.7pc.

The strength of high-priced petrochemical stocks such as SABIC suggested there was good institutional buying support for the market ahead of catalysts expected later this year, including MSCI’s decision in June on whether to label Saudi Arabia an emerging market, and FTSE’s similar decision in March.

Investment bank EFG Hermes said January had seen the highest net foreign fund inflows into Middle Eastern and North African equities since April 2015, of $1 billion; Saudi Arabia accounted for the lion’s share, $703 million, through swaps and qualified foreign institutional investors.

Among other blue-chip gainers, Al Rajhi Bank climbed 2.2pc.

Trade Union Cooperative Insurance surged 5.2pc after reporting an 87pc leap in fourth-quarter net profit, as gross written premiums increased 35pc. But Salama Cooperative Insurance fell 0.9pc after quarterly profit shrank 6pc.

In Dubai, the index edged down 0.2pc as amusement park operator DXB Entertainments fell 0.5pc after reporting its net loss widened to 1.12 billion dirhams ($305 million) last year from 485 million dirhams in 2016.

But Air Arabia, the most heavily traded stock, rose 0.8pc after swinging to a fourth-quarter profit of 26 million dirhams from a year-ago loss of 33 million dirhams. However, SICO Bahrain had forecast a much higher profit of 68 million dirhams.

Abu Dhabi’s index rose 0.6pc as Abu Dhabi National Energy Co shot up 11.9pc in its heaviest trade since last August. It has been rising since it reported at the end of last week that it swung back into the black last year.

In Qatar, the index dropped 0.6pc, dragged down by Qatar National Bank, which lost 4.6pc as it went ex-dividend. 

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