Saudi index bounces from technical support, Middle Eastern markets mostly sluggish

08 Dec, 2017

Most Middle Eastern stock markets were sluggish on Thursday but Saudi Arabia's index rebounded from technical support in its heaviest trading volume since June. The Saudi index rose 0.9 percent to 7,086 points, bouncing from near strong support around 7,000 points, where the peaks in late October and November roughly coincide with the 200-day average, now at 7,015 points.
The most heavily traded stock, real estate firm Dar Al Arkan , climbed 8.3 percent to 12.88 riyals in its heaviuest trade since June. It has rocketed from around 7.50 riyals in mid-November, when MSCI said it was adding the stock to its Saudi Arabia Index. Several petrochemical firms jumped, with Saudi Kayan
soaring 9.9 percent, Chemanol up 6.8 percent and PetroRabigh up 5.0 percent. Amiantit jumped 9.7 percent in its heaviest trade since 2012 after saying a 50 percent owned affiliate had won a five-year, 100 million riyal ($26.7 million) contract to manage water utility services in Jeddah.
In Dubai, the index edged down 0.03 percent. Emaar Properties DU> rebounded 2.0 percent but its unit Emaar Development continued to slide, falling 3.8 percent to a record low of 5.34 dirhams, compared to last month's initial public offer price of 6.03 dirhams. Qatar's index dropped 0.3 percent after sinking 1.5 percent on Wednesday. Real estate firm Ezdan Holding, which had been rebounding strongly in recent days, fell back 7.8 percent.
The Qatari market surged early this week on hopes for progress in resolving Qatar's diplomatic dispute with four other Arab states. But those hopes were dashed when Saudi Arabia, the United Arab Emirates and Bahrain, in an apparent snub of Qatar, did not send their heads of state to this week's regional summit in Kuwait.

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