Saudi stocks climb for 9th day in a row

JEDDAH/DUBAI — Major stock markets in the Middle East rose slightly on Monday, outperforming sluggish bourses in Asia and Europe, as Saudi banks continued rebounding on the back of October›s huge international bond issue by their government. The bond issue has allowed the government to suspend, at least temporarily, domestic bond sales and, in conjunction with other steps, this has started to ease a liquidity crunch in the banking system due to low oil prices. Short-term Saudi money rates have fallen in the last two days. That has sustained a rally in the stock market, where the benchmark Tadawul All Share Index climbed for a ninth straight trading day on Monday, gaining 0.6 percent to 6,012 points in active trade. It has surged 10.1 percent during the nine-day period, although it is still 10.3 percent below its July peak. The banking sector index added 0.5 percent as the biggest lender, National Commercial Bank, rose 0.7 percent. On Sunday it had rocketed 7.7 percent in its heaviest trade since July 2015. Among other gainers, telecommunications firm Zain Saudi and miner Ma›aden both rose 3.5 percent. As money flowed into such stocks, the petrochemical sector underperformed, edging up only 0.2 percent. Elsewhere, Dubai›s index rose 0.4 percent as Emaar Properties climbed 0.9 percent. But courier Aramex dropped 3.8 percent after its third-quarter earnings came in at the low end of expectations. Aramex reported a 3 percent fall in profit to 72.2 million dirhams ($19.7 million). EFG Hermes and SICO Bahrain had forecast 75.8 million dirhams and 77.1 million dirhams. Abu Dhabi›s index added 0.3 percent on the back of the two biggest banks, which plan to merge early next year. National Bank of Abu Dhabi climbed 2.3 percent and First Gulf Bank 1.8 percent. Qatar gained 0.3 percent. Telecommunications operator Ooredoo closed 3.1 percent higher after initially falling when it reported a 51 percent drop in third-quarter net profit to 370 million riyals ($101.6 million); the average forecast of analysts polled by Reuters was 499.3 million riyals. ­— SG/Reuters