Middle East Stocks Gain as Saudi Recovers from Worst Week
Saudi Arabia’s main equities index rose the most in the Middle East, recovering from its worst weekly performance since June.
The Tadawul All Shares Index ended the day 0.7% higher following a 1.2% decline last week — its first weekly drop in more than three months. Saudi British Bank, Saudi Kayan Petrochemical Co. and National Industrialization Co. all advanced more than 1.8%.
Fahd Iqbal, the head of Middle East research at Credit Suisse, said that valuation for Saudi Arabian shares is “very rich” when compared to emerging markets. For the premium they trade at to be justified, “we would have to see a very speedy economic recovery, but that is not the kind of environment we are expecting in the fourth quarter,” Iqbal said in an interview.
- Dubai’s DFM General Index falls 0.3%, Abu Dhabi’s ADX General Index climbs 0.4%
- The United Arab Emirates’ interior ministry denied rumors of a new lockdown in the country after a fake tweet started circulating
- In Riyadh, Arabian Centres gains as much as 2.5% after it announced the opening of an extension of a mall in Riyadh that will add 16,000 square meters of additional gross lease
Israel’s market is closed Sunday and Monday due to a holiday
The kingdom is preparing for a quick rebound in tourism and hasn’t revised its visitor targets for 2021 despite the pandemic, Tourism Minister Ahmed Al-Khateeb said.
In Egypt, the main index trimmed gains and finished 0.1% lower. The benchmark had initially climbed as much as 0.8% after the country’s central bank unexpectedly lowered interest rates last week.