Tadawul soars to 13-month high

Banking shares boosted Saudi Arabia’s stock index on Tuesday to its highest level in 13 months, while other Gulf markets moved little in quiet trade with some foreign investors absent for New Year holidays.
The Tadawul All-Share Index closed up 1.3 percent at 7,257 points in its highest trading volume for two weeks, rising above technical resistance at this year’s previous peak of 7,235 points hit in early December.
The banking sector surged 1.8 percent as the biggest lender, National Commercial Bank, climbed 2.1 percent. Banks underperformed the market in the initial reaction to the 2017 state budget at the start of this week, when activity focused on other sectors including petrochemicals.
The budget was generally viewed as positive by analysts because it was modestly expansionary while including a further cut to the deficit. Saudi Electricity, which has been buoyed by plans in the budget to raise power tariffs later this year, rose 1.8 percent.
Much activity focused on second- or third-tier stocks favored by local retail investors, including Tihama Advertising, which jumped its 10 percent daily limit. It resumed trading this week after being suspended because it delayed announcing its financial results.
Only 12 stocks ended in the negative while 156 gained as all sectors, except telecoms, advanced.
The banking sub-index rose nearly 2 percent. Alawwal Bank, formerly known as Saudi Hollandi Bank, jumped 8 percent to SR14. Samba Financial Group rose over 5 percent to SR25 and Bank Albilad added 3 percent to SR21.15.  
Petrochemical stocks rose in line with the index. Chemanol was the top riser, up 5 percent to SR7.55.
Sahara added 3 percent to SR14.65 while SABIC rose a modest 0.5 percent.
Insurance stocks were among the top losers on Tuesday. Walaa Insurance fell 2.4 percent to SR22.55.
Dubai’s index fell 0.3 percent as DXB Entertainments pulled back 1.5 percent. Abu Dhabi rose 0.3 percent on the back of a 0.9 percent gain by Abu Dhabi Commercial Bank.
Egypt’s blue-chip index closed flat in heavy trading volume, with foreign investors net buyers by a small margin. Egypt Gas Co. surged 5.3 percent after it predicted lower net profit but higher revenues in 2017.

Source: Arab News