Tadawul index leads regional gains ahead of MSCI review
(6/20/2017 1:35:00 AM)
Saudi Arabia’s Tadawul index, bucking a weak regional trend, gained more than 2.5 per cent on Monday ahead of the MSCI’s review on inclusion of the gauge in the emerging market index.
The Tadawul index was 2.64 per cent higher at 7,062.91, the highest daily percentage gain in many months. But the index has lost 4.5 per cent so far in the year, making it an underperformer to Egyptian index, which has gained 9 per cent.
“The anticipation has been muted to a some extent. The fact that you are down on year to date and you have a bit of today and tomorrow left, it means to me that they are not expecting a positive decision,” Sanyalaksna Manibhandu, director Research, National Bank of Abu Dhabi Securities said.
The decision to include Saudi Arabia in the emerging market index, which already includes the UAE and Qatari index, will be taken on Tuesday.
“People may be covering their shorts to some extent. Even if they say that Saudi Arabia is in, alot people would think that implementation won’t happen until 2018,” Manibhandu said, adding “If we look at the market. It doesn’t look like the market is expecting anything positive.”
Traded volume stood at 3 billion on Monday. Dubai stocks: Emaar Properties jumped 1 per cent in trade, supporting Dubai index. “We will see Emaar trending up with an IPO in real estate,” Manibhandu said. “If Emmar would continue to go up, there would be buying Aldar, and that would generally put more risk money.”
The Dubai Financial Market General Index closed 0.41 per cent higher at 3,458.37. In other stocks in Dubai, Union Properties closed flat at Dh0.970. Tabreed hit its upper limit, jumping nearly 15 per cent to close at Dh2.12.
DP World closed 0.5 per cent lower at $21.32. Gulf Finance House fell 0.45 per cent lower at Dh2.20.
Elsewhere in the UAE, the Abu Dhabi Securities Exchange general index closed 0.21 per cent lower at 4,491.29. Dana Gas closed 2.86 per cent lower at Dh0.68, extending losses for another session. Etisalat closed 0.58 per cent lower at Dh17.25.
National Bank of Abu Dhabi closed 0.46 per cent lower at Dh10.80. Union National Bank closed 2.81 per cent higher at Dh4.75. Abu Dhabi Commercial Bank closed 1.28 per cent higher at Dh7.13.
Elsewhere in the Gulf, the Qatar exchange index closed 1 per cent lower at 9,069.34. The Muscat MSM 30 index closed at 5,220.940, down 0.54 per cent. The Bahrain bourse all share index closed 0.50 per cent lower at 1,316.52.