21/03/2011
Spending package send TASI soaring
Massive spending package to the citizens of Saudi Arabia, the most economically important and influential Arab country, boosted investor sentiment in the Gulf on Sunday.
The Tadawul All-Share Index (TASI) ended 4.5 percent higher at 6,343.79 — a one-month high, after its biggest gain since March 5, before fears of unrest spreading in the Gulf spooked investors.
The sector activity for the day was all positive. The gaining sector ranged from 2.66 percent by the Hotel & Tourism sector to 6.20 percent by the Cement sector. The overall market breadth for the day was positive with 145 advancers against 0 decliners giving it an AD ratio of 0, the Financial Transaction House (FTH) — licensed by the Capital Market Authority — said in its daily market report.
The stock market turnover for the day reached SR5.85 billion.
Stocks in Qatar and UAE rose by more than two percent.
“Saudi Arabia contributes to almost 50 percent of the GDP of GCC (Gulf Arab) countries... a boost in the Kingdom’s economy will reflect in all regional markets and that’s what we saw today,” Reuters quoted Hesham Tuffaha, head of research at Riyadh-based Bakheet Investment Group, on Sunday.
The index may gain 2 to 3 percent more, reaching 6,500 points by the end of the week, Tuffaha estimated.
An exodus of businesses from unstable North African markets may eventually help lift the relatively safer Gulf markets of UAE and Qatar, analysts say.
“Local institutions and foreign buyers in the region are on a lookout for markets away from political tensions... UAE and Qatar provide such an environment,” Samer Al-Jaouni, general manager of Dubai-based Middle East Financial Brokerage Co., said.
The Dubai and Qatar benchmarks ended at a week high, gaining 2.6 percent each.
Dubai bluechip Emaar Properties gained 3.9 percent and Arabtec surged by 9.2 percent to a four-week high, Reuters said.
Saudi Basic Industries Corp. (SABIC) advanced 4.6 percent and Al-Rajhi Bank climbed 5.1 percent.
Kuwait’s bourse was one of the few losers,The index fell 0.2 percent to 6,252 points.
Zain dropped 4.4 percent to a three-week low, after Etisalat scrapped its $12 billion deal to buy a controlling stake in the Kuwaiti telecoms gro
