Saudi stocks rise as petrochemical sector gains strength

Most Gulf stock markets rose on Tuesday, with petrochemical shares pushing Saudi Arabia up.
The Tadawul All Share Index (TASI) gained 0.7 percent in thin trade as the biggest petrochemical producer, Saudi Basic Industries Corporation (SABIC), rose 1 percent and Saudi Kayan added 3.1 percent.
Several other stocks favored by foreign institutional investors also rose sharply. Food company Almarai climbed 2.9 percent and Banque Saudi Fransi surged 3.5 percent after its investment arm, Fransi Capital said its Taleem real estate investment fund was heavily oversubscribed.
Dubai’s index rose 0.7 percent in thin trade as builder Arabtec, the most heavily traded stock, jumped 4 percent.
Loss-making theme park operator DXB Entertainments climbed 2.3 percent, pulling further away from a two-year low hit on Sunday. Investors were still reacting positively to news that its chief executive Raed Kajoor Al-Nuaimi had been appointed CEO of a new entity that will manage development projects for Dubai Holding and Meraas Holding. The company has not yet named a new CEO.
Qatar’s index lost 0.5 percent as Ezdan, the most heavily traded stock sank its 10 percent daily limit. It has plunged since the end of last week when shareholders gave preliminary approval for the company to delist from the market.
The exchange said it had removed Ezdan from the Qatar Stock Exchange (QSE) Index after Monday’s close because of this decision but the steep drop soured sentiment toward other stocks.
Meanwhile, international index compiler FTSE is expected to announce the results of its June review on Wednesday, with changes to its indexes effective after the close on June 16, investment bank VTB Capital said in a report.
VTB calculated that based on preliminary index weighting changes revealed last week, Qatari Investors Group (QIG) would see $6 million of fund outflows due to the changes and Ooredoo would see a $22 million outflow. QIG shares dropped 1.7 percent on Tuesday and Ooredoo slipped 0.9 percent.

Source: Arab News