It has been announced on Thursday that the Saudi stocks led regional gains and is currently continuing its rally as the $17.5 billion bond issue to boost sentiment. UAE’s stock are however closed a little higher.
“It’s been a continuation of the rally we saw over the last few weeks or so, which was caused by the Saudi bond issuance, and that caused a surge in confidence. The only thing that could put Saudi markets aggressively higher is the production cuts, but we will have to wait till end of November” said Saleem Khokhar (head of equities at NBAD’s asset management group).
An Opec deal was discussed in September but this deal has run a rough patch after Iraq and other countries required exceptions from an output cut or freeze. On November 30th, a decision as to how to deal with this problem will be taken by the Opec and non-Opec members.
With regards to stock specific actions, the Alinam Bank closed more than 3% at 13.85 riyals. Saudi Basic Industries closed at 84.25 riyals while Saudi Kayan Petrochemical Co closed at 1.76%.
UAE stocks are currently on a positive zone. The Abu Dhabi Securities Exchange General Index closed at 0.40% and the Dubai Financial Market General Index also closed at 0.21%.
Gulf Finance House closed more than 3% and Gulf Navigation also closed more than 6%.
Kuwait Stock Exchange index closed at 0.03%.
With regards to the US elections, “We have elections coming up in the US, and they would set the tone in the markets generally. If Trump wins, markets would come off a little bit,” Khokhar said.