Tadawul extends strong winning streak

The Tadawul All Share Index (TASI) extended its strong winning streak for a third session on Sunday after being shut for a week for Eid Al-Fitr and added 0.8 percent. Daily traded volumes shrank by about a half from the average of the previous two sessions.
The index is now up 6.2 percent since June 20 when index compiler MSCI said it would add Riyadh on a watch list for an emerging market upgrade.
The rally has also been supported by the announcement that the Kingdom made the architect of the economic reforms, Prince Mohammed bin Salman, next in line to be king at around the same.
Shares of heavyweight National Commercial Bank jumped 6.3 percent on Sunday to a fresh 21-month peak. The majority government-owned lender is expected to benefit both from MSCI’s decision and the expectation that the ambitious economic agenda may translate to higher future earnings.
Petrochemical shares were also strong with Saudi Kayan Petrochemical adding 1.9 percent.
Emerging market status would be regarded as giving the green light to international investors to buy stocks on the Riyadh exchange. It would also be regarded as a nod of approval for the Kingdom’s ambitious plans to diversify its economy away from oil dependency, known as the Vision 2030 plan.
Financial analysts welcomed the potential upgrade to emerging market status, saying it would increase Saudi Arabia's attractiveness to foreign investors.
Deutsche Bank estimated that some $43 billion of foreign funds would flow into the Kingdom under the new status. “The key beneficiaries will be large capitalized companies that currently have a low level of foreign ownership,” the bank said.
Meanwhile, Kuwait’s stock index lost 2.2 percent to 6,613 points in very thin trade, heading toward its immediate technical support at the mid-May low of 6,545 points. Telecommunications operator Zain lost 1.7 percent.
In the UAE, Abu Dhabi’s index rose 0.4 percent on the back of strong gains in some large-cap banking shares; Abu Dhabi Islamic Bank climbed 2.6 percent. In neighboring Dubai, Dubai Islamic Bank fell 1.2 percent, helping take the index 0.3 percent lower.
In Egypt, the index rose 0.7 percent as shares of private equity firm Qalaa Holdings, the most heavily traded stock, climbed 3.8 percent.
— With input from Reuters, AP

Source: Arab News