Real estate gains drive Saudi stocks higher

Saudi Arabian stocks snapped a four-day losing streak yesterday, led by gains in the real estate sector. The Tadawul All-Share Index closed 0.62 percent higher at 6,701 points while the real estate sector ended 3.8 percent higher. Dar Al-Arkan Real Estate Development Company shares soared 9.82 percent in response to news that it is repaying SR 3.75 billion sukuk, which is due tomorrow. Zain KSA shares edged higher by 5.2 percent to SR13.05. “This clearly was a jump linked in large part to the performance of two companies. However, the recovery in the oil price is something that will have a more broad-based positive effect,” commented National Commercial Bank Chief Economist Jarmo T. Kotilaine. He said: “While the global economic outlook remains highly uncertain, it looks increasingly like the oil price faces a fairly significant downward ceiling for now. From the perspective of Tadawul, this is good news.” Most of the major sectors closed in the green territory yesterday. Only three sectors ended in red, paring 52.8 points collectively. The market breadth was positive with 95 stocks witnessing advances against 43 stocks witnessing declines and prices of 17 companies remaining unchanged. The value of Saudi traded shares reached SR 5.79 billion with volume of 332 million shares. “Globally there is some recovery in oil prices and some of the sentiment from these international events is reflected in today’s activity,” Bloomberg quoted Asim Bukhtiar, head of research at Riyad Capital, as saying. The petrochemical sector closed up 0.2 percent and the banking index ended 0.5 percent higher. SAFCO shares fell 0.3 percent after the fertilizer maker posted a 0.8 percent drop in second-quarter net profit to SR 784 million.