Saudi stocks rise on MSCI optimism; SABIC jumps

As Saudi Arabia’s stock market gears up for a possible inclusion on MSCI’s watch list for upgrade to Emerging Market status on Tuesday, investors took advantage of the optimism and picked up select stocks on Sunday.  

The Tadawul All Share Index (TASI) closed 0.9 percent higher at 6,881.

“While we believe that an upgrade inclusion in watch list for Saudi will lead to enhanced market liquidity and generate more interest in the Saudi market, we caution investors to be wary of irrational exuberance as an inclusion is unlikely to change market fundamentals which currently remain tepid,” Al Rajhi Capital said a note Sunday.

The brokerage cautioned that any rally post the announcement would be sentiment and speculation driven, unlikely to sustain over a long period of time.

However, volumes were less than robust SAR 1.9 billion. The advances- declines ratio was 75/89.

Gains were spread across most sectors, with banks adding more than 1 percent.

National Commercial Bank closed 2.4 percent higher at SAR 45.24, marking a 52-week high. Today marks the record date for the H1-2017 cash dividend of SAR 1.10.

Saudi British Bank added 1.7 percent to SAR 24.14 while Arab National Bank and Samba were 1.5 percent higher at SAR 20.10 and SAR 23.22 respectively.

Index heavyweight Al Rajhi Capital was slightly higher at SAR 62.10.

Petrochemical stocks advanced after oil prices edged higher Friday from previous lows. Bellwether SABIC was jumped 2 percent to SAR 101.

 Elsewhere, Savola and Saudi Electricity soared 5 and 4 percent respectively.

In contrast, Fawaz Alhokair and Alujain were among top decliners, down more than 3 percent each.

Write to Brinda Darasha at brinda.d@argaamplus.com