Saudi Stocks Fluctuate After Rising to Highest Level in 6 Years

//Saudi Stocks Fluctuate After Rising to Highest Level in 6 Years

Saudi Stocks Fluctuate After Rising to Highest Level in 6 Years

By | 2014-08-25T10:53:20+00:00 August 25th, 2014|Middle East|0 Comments

Shares in Saudi Arabia swung between
gains and losses, with as many as 19 companies including Bank
Albilad and Saudi Fisheries Co. plunging more than 5 percent
before the index rebounded.

The Tadawul All Share Index (SASEIDX) rose 0.2 percent to 10,926.86
at 1:18 p.m. in Riyadh, having lost as much as 1 percent
earlier, the biggest drop since June 24. Bank Albilad declined
as much as 6.2 percent, the most since June 2012, while Saudi
Fisheries fell as much as 6.4 percent, its biggest loss since
April. Al Rajhi Bank, the world’s biggest listed Islamic lender,
led advancers, climbing 1.5 percent.

Saudi Arabia’s benchmark index is one of the best
performing in the world this year in dollar terms, according to
data compiled by Bloomberg, having advanced 28 percent to close
at the highest in six years yesterday. The country’s regulator
last week outlined shareholder limits for foreigner investors as
it prepares to open one of the world’s most restricted markets.

The gauge’s price-to-earnings ratio climbed to 21 today,
the highest level since March 2010. That compares with a ratio
of almost 14 for the MSCI Emerging Markets Index. The Tadawul’s
14-day relative strength has risen to almost 92. A level above
70 indicates to some analysts that securities are overbought and
poised to decline.

Bank Albilad fell 3.1 percent to 51.25 riyals, while Saudi
Fisheries lost 2.3 percent to 43.30 riyals. Al Rajhi climbed to
74.75 riyals.

The country’s bourse may be added to MSCI Inc.’s emerging-markets gauge by 2017 at the earliest, Sebastien Lieblich,
executive director at MSCI Index Research, said in July. That
may translate into about $35 billion to $40 billion of inflows,
John Burbank, founder of Passport Capital LLC, wrote in an e-mail on Aug. 21.

To contact the reporter on this story:
Samuel Potter in Dubai at
spotter33@bloomberg.net

To contact the editors responsible for this story:
Justin Carrigan at
jcarrigan@bloomberg.net
Dana El Baltaji