Saudi lifted by financials, other markets mixed

Dubai : Saudi stocks were lifted yesterday by optimism about fund flows and Qatari stocks rose on strong bank earnings, while other bourses in the region were lacklustre.

The Saudi index closed 1.0 per cent higher, lifted by financial stocks. Insurance firm BUPA Arabia gained 5.5pc after it recommended an increase in capital to 1.2 billion riyals ($320 million) from 800 million riyals through a 1-for-2 bonus share issue.

Banks were also up, with Al Rajhi Bank gaining 2.7pc, returning to the multi-year high hit last week.

“Investor sentiment is still positive on Saudi due to relatively higher oil prices. Overall we have positive vibes in the market for now ahead of a (potential) MSCI upgrade,” said Muhammad Faisal Potrik, head of research at Riyad Capital.

Index compiler MSCI will decide in June whether to upgrade Riyadh to emerging market status.

In Doha, Qatar Islamic Bank gained 1.6pc after reporting a 12.6pc rise in first-quarter net profit to 625.2 million riyals ($171.8 million). That was above analysts’ average forecast of 547 million riyals.

In Dubai, Emaar Properties fell 1.7pc, pushing the index 0.3pc lower. Emaar, which has lost 10pc so far this year because of a weak local real estate market, has been a big drag on the index.

In Oman, National Bank of Oman fell 1.6pc after it reported a nearly 9pc drop in quarterly net profit to 12.6 million rials ($32.7 million), below EFG Hermes’ forecast of 13.3 million rials but above Gulf Baader Capital Markets’ 11.1 million rials.