GULF MOVES LITTLE - SAUDI MA’ADEN UP

Dubai

Shares in Saudi Arabian Mining Co (Ma'aden) helped lift the Riyadh bourse yesterday as they surged to a record high, while other Gulf markets barely moved and profit-taking continued in Egypt.

Saudi Arabia's index rose 0.8 per cent and Ma'aden gained 6.4pc to 47.90 riyals, becoming the most heavily traded stock and breaking through technical resistance at 46.30 riyals, where it had peaked in March and April.

Al Rajhi Capital this week raised Ma'aden's target price to 52.00 riyals from 41.00 riyals, citing its growing output and an improving business outlook. Ma'aden said this month that its massive smelter run jointly with U.S. group Alcoa, which had experienced several technical glitches on start-up, would produce above its initial capacity target this year.

Dairy firm Almarai rose 1.4pc after its board approved a capital investment plan for 2016-2020 which will reach 21 billion riyals ($5.6bn).

The firm said it wanted to double consolidated sales in the period and expand its activities in farming, manufacturing, distribution and logistics.

Foodmaker Savola Group, which has a 36.5 percent stake in Almarai, rose 0.9 percent.

Other Gulf markets were trendless and barely moved. Dubai's index edged down 0.2pc as most stocks declined in low-volume trading.

Abu Dhabi's bourse slipped 0.2pc but Abu Dhabi Commercial Bank climbed 0.6pct. Egypt's market edged down 0.8pc as Telecom Egypt tumbled 4.3pc ahead of its exclusion from MSCI's emerging markets index. The move, which takes effect at the end of this month, is likely to result in a sell-off by passive funds which closely follow the MSCI benchmark; active investors have already been selling in anticipation.

Qatar index inched up 0.1pc to 12,409 points, Kuwait added 0.1pc to 6,310 points, and Oman edged up 0.2pc to reach 6,390 points. In Bahrain, stock index climbed 0.2pc to 1,367 points.