Saudi Arabian stocks led gains across most Gulf equities, rising for a third day on optimism the kingdom will repay companies after it raised a record $17.5 billion from its debut international bond sale.
The Tadawul All Share Index added 1.6 per cent on Sunday in Riyadh to close at 5,739.92, the highest level in a month. Dar Al Arkan Real Estate Development was the most-traded stock after it posted an increase in quarterly profit for the first time in a year. Dubai’s DFM General Index added 0.5 per cent.
Saudi Arabia, the Arab world’s largest economy, sold the biggest ever foreign bond from an emerging-market nation last week and vowed to increase payments to contractors, sparking a stock rally that boosted the market capitalisation of the exchange by about $12 billion.
The kingdom’s benchmark index is one of the world’s worst performers this year as the country implements a series of austerity measures to improve its finances after the price of oil, its main source of income, plummeted.
“We’re seeing a general recovery after the events last week,” said Nabil Rantisi, the managing director of Abu Dhabi-based Mena Corp. Financial Services, one of the biggest brokerages in the United Arab Emirates. “There are many stocks that are trading at some good levels that could benefit. Banks, for example, are attractive. Investors are looking for good opportunities now.” Bloomberg