JEDDAH – Saudi Arabia stocks were higher after the close on Monday, as gains in the Real Estate Development, Financial Services and Telecoms & IT sectors led shares higher.
At the close, the Tadawul All Share gained 2.53% to hit a new 3-months high.
The best performers of the session on the Tadawul All Share were Al Sagr Co-operative Insurance Co, which rose 10.38% or 3.30 points to trade at 35.10 at the close. Meanwhile, Arabia Insurance Cooperative Co added 9.70% or 0.80 points to end at 9.05 and Samba Financial Group was up 9.30% or 2.00 points to 23.50 in late trade.
The worst performers of the session were Arabian Pipes Company, which fell 3.24% or 0.35 points to trade at 10.45 at the close. Al Hassan Ghazi Ibrahim Shaker declined 2.62% or 0.70 points to end at 26.00 and Dar Alarkan Real Estate Development was down 2.59% or 0.15 points to 5.65.
Rising stocks outnumbered declining ones on the Saudi Arabia Stock Exchange by 80 to 61 and 26 ended unchanged.
Crude oil for June delivery was down 0.27% or 0.12 to $43.61 a barrel. Elsewhere in commodities trading, Brent oil for delivery in July rose 0.04% or 0.02 to hit $45.09 a barrel, while the June Gold contract rose 0.56% or 6.85 to trade at $1236.85 a troy ounce.
Meanwhile, emerging market stocks and currencies fell as a retreat in oil and concern the Federal Reserve may turn more hawkish at its meeting this week damped demand for higher-yielding assets.
Chinese stocks extended last week’s losses and the yuan weakened for a fourth day after commodity exchanges moved to cool trading in raw materials and data showed stronger demand for workers, suggesting the central bank won’t offer additional measures to boost growth. Saudi shares rose the most in more than a month after approval of a plan for a post-oil era. Russia’s Gazprom PAO and Lukoil PJSC led energy producers lower after crude oil tumbled as much as 1.8 percent. Turkish bonds fell.
Benchmark equity indexes in South Africa, Qatar and Poland fell at least 0.7 percent. Russia’s Micex Index slumped 0.6 percent and Ibovespa futures fell 0.6 percent amid Brent crude’s decline.
“It is partly jitters around the Fed this week that are causing the declines across emerging markets today, but also a reaction to the rumors last week that the Chinese central bank may be providing less stimulus in the future,” said Michael Wang, a strategist at hedge fund Amiya Capital LLP in London who favors shares in India, Mexico and Poland. “Emerging-market fundamentals are still weak, so a rise in U.S. yields would pressure emerging-market FX and eventually, equities.”
The rally in emerging-market assets since the middle of February is petering out as markets look for renewed guidance about whether recent data on hiring in the US warrants a quickening of interest-rate increases. While the Fed is forecast to stay on hold on Wednesday, its statement may provide signals on when it plans to add to its December rate increase. US central bankers have indicated they will raise rates twice this year.
The MSCI Emerging Markets Index fell 0.5 percent to 841.42 as of 1:45 p.m. in London, heading for the lowest close in two weeks, as all 10 industry groups declined, led by energy and industrial shares.
The MSCI gauge trades at 11.9 times the projected earnings of its members in the next 12 months, indicating a 27 percent discount to the valuation for advanced-nation shares.
The Shanghai Composite Index lost 0.4 percent after sliding 3.9 percent last week. Commodity exchanges in the Chinese cities of Zhengzhou and Dalian announced late Friday that they would raise margin requirements on futures contracts of cotton and thermal coal, following similar moves on steel reinforcement-bar and iron ore contracts earlier in the week. — SG/Agencies
