Saudi cement shares surge on eve of budget

Dubai : Saudi Arabia’s stock market surged yesterday as cement firms climbed before the release of the government’s 2018 budget, which is expected to include an increase in infrastructure spending.

The Saudi stock index surged 1.4 per cent in active trade. Five of the 10 most heavily traded shares and six of the 10 top gainers were cement firms, with Najran Cement jumping 6.0pc after a 4.5pc gain on
Sunday.

Analysts generally expect a moderate increase in spending in the 2018 budget and for deficit-cutting to slow considerably as the government focuses more on supporting growth; infrastructure spending may rise after two years of austerity.

In Dubai, the index was flat in very quiet trade. Abu Dhabi climbed 1.1pc as ADNOC Distribution , which listed last week after an initial public offer of shares at 2.50 dirhams, was the most heavily traded stock and climbed 2.6pc to 2.74 dirhams.

Egypt’s blue-chip index was almost flat. Alexandria Mineral Oils climbed 5.5pc after saying its profit for the latest quarter jumped more than fourfold from a year earlier.

Egypt Gas Co, which handles natural gas engineering and maintenance work, soared 10pc, rising sharply for a third straight day.

It is expected to benefit from work related to Egypt’s giant Zohr gas field, where pilot production of gas started this month, and at the end of last week the company forecast it would swing into the black in 2018 as revenues more than doubled.

Markets in Qatar and Bahrain were closed for public holidays.