Middle East Market Movements: Saudi Arabia Soars
In a surprising turn of events, Saudi Arabia’s benchmark index experienced a significant surge of 2.6%, marking its most substantial intraday rise in nearly a year. This uptick was fueled by widespread sectoral gains that have captured the attention of investors worldwide.
The standout performer in this market rally was Al Rajhi Bank, the world’s largest Islamic lender, which saw a remarkable 3.7% increase in its share price. Additionally, Saudi Aramco, the kingdom’s oil giant, witnessed a 1.8% rise in its shares following a secondary share offering that is expected to raise over $11.2 billion, representing a substantial 5.7% jump from the offering price. Furthermore, Miahona Holding, a company specializing in water and wastewater infrastructure, experienced an impressive 19.8% surge in its shares, reaching 17.9 riyals per share after its IPO, initially priced at 11.5 riyals.
Investors are drawn to Saudi stocks amidst this newfound confidence and positive market sentiment. The strong performances of key players like Al Rajhi Bank and Saudi Aramco indicate a growing appetite for investment and increased liquidity in the market. With various sectors, including finance and infrastructure, demonstrating robust performance, Riyadh presents itself as an attractive destination for investors looking to diversify their portfolios.
On a broader scale, while Saudi Arabia celebrates its market gains, other countries in the Middle East are experiencing a mixed bag of results. Qatar’s benchmark index has risen by 0.4% over seven consecutive sessions, propelled by the success of companies like Industries Qatar and Qatar Gas Transport. In contrast, Egypt’s blue-chip index has dropped by 2.9%, extending its losing streak, with notable declines in Commercial International Bank and Talaat Mostafa Group. Meanwhile, Kuwait has seen a marginal increase of 0.1%, while Bahrain and Oman have witnessed decreases of 0.1% and 0.7% respectively, reflecting diverse levels of investor sentiment and economic conditions across the region.