*** ----> Saudi index holds above 8,000 points telcos boost Egypt | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Saudi index holds above 8,000 points telcos boost Egypt

Riyadh : Saudi Arabia’s stock market continued a strong uptrend yesterday on the back of petrochemical and banking stocks, while rising telecoms shares boosted Egypt.

The Saudi index closed 0.6 per cent up at 8,096 points, having finished above 8,000 points on Monday for the first time since August 2015.

Petrochemicals giant Saudi Basic Industries rose 1.9pc before going ex-dividend on Wednesday. Al Rajhi Bank , meanwhile, gained 0.8pc.

Exchange data showed that foreign investors bought a net $206 million of Saudi stocks last week, attracted by rising oil prices and the potential decision by MSCI in June to include the kingdom in its emerging market index.

“Higher oil prices are the main driver for the Saudi market — people are optimistic over prices going up further in coming months,” said Mazen al-Sudairi, head of research at Rajhi Capital.

However, Saudi stocks are on average trading at 17.4 times last year’s earnings, compared with 16 times for FTSE emerging markets, he added, warning that this increased the chances of a pull-back in the coming weeks.

Real estate company Arriyadh Development lost 4pc after reporting almost flat net profit for the first quarter.

The Abu Dhabi index rose 0.5pc on a 1.2pc increase for First Abu Dhabi Bank. Aldar Properties added 1pc after it announced a 10 billion dirham ($2.7 billion) plan to enhance its Alghadeer project close to the Abu Dhabi-Dubai border.

Dubai’s index lost 0.3pc on a 3.3pc decline by courier firm Aramex as it traded ex-dividend. Property developer Emaar lost 0.5pc.

In Egypt, the index jumped 1pc. Global Telecom surged 4.7pc and Telecom Egypt added 5.4pc while Commercial International Bank rose 1.2pc.

GB Auto surged 4.5pc after its board gave initial approval for a mergeer with R.G. Investment at book value. Food company Domty gained 1.9pc after it said it had swung to a consolidated net profit in the first quarter from a loss in the corresponding period last year.