DUBAI: Saudi Arabia’s main stock index rose above the 8,000-point level yesterday for the first time in nearly five years, while Egypt hit a fresh five-month high on increasing hopes for a peaceful resolution to its political crisis.
The Saudi index advanced 1.3 percent to 8,072 points, its highest finish since September 2008; it has gained in five of the last six trading sessions.
The kingdom’s bourse will close from today for Eid holidays and resume trading on August 13; investors’ willingness to hold stocks over the holidays is a bullish signal. “The recent buying is positioning ahead of a post-Eid rally,” said Amer Khan, fund manager at Shuaa Asset Management.
“From a fundamental perspective, quarterly earnings were either in line or better than expectations, underlining the strength in the Saudi economy.”
The Saudi index’s break this week above major resistance at 7,944 points, the April 2012 peak, was long-term bullish and leaves no major chart barrier before 8,782 points, the 61.8 percent retracement of the fall from January 2008.
Meanwhile, Cairo’s benchmark climbed 1.5 percent to its highest close since February. The market has fully recouped losses suffered during the political turmoil early this year and is up 2.8 percent year-to-date.
In Dubai, the measure rose 1.2 percent to hit a fresh 56-month high as upbeat second-quarter earnings boosted retail investor sentiment. The market has been dominated by retail activity as investors look for short-term gains. Dubai Investments Co and Dubai Financial Market climbed 1.6 and 3.5 percent respectively, the two most active stocks.
Reuters
