Saudi Stocks Up Most This Year on Aramco, Oil Outlook: Inside EM
Saudi Stocks Rise Most in Gulf With Aramco, Oil Eyed: Inside EM
(Bloomberg) -- Saudi Arabia’s main equity index advanced the most in more than a year after the pricing of Saudi Aramco’s initial public offering and amid hopes of higher oil prices.
The Tadawul All Share Index rose 2.4% on Sunday, the most for a session since October 2018. The kingdom raised $25.6 billion from the world’s biggest IPO after selling shares at 32 riyals ($8.53) each. That was the top end of the range and values the energy company at $1.7 trillion. It received total bids of $119 billion. Aramco shares will start trading in Riyadh on Wednesday.
Saudi Arabia said Friday it will cut oil supply by more than what was agreed with fellow OPEC+ members, as it guns for a $2 trillion valuation for Aramco. Oil prices climbed following the announcement.
“Saudis are giving thumbs up to Aramco,” said Joice Mathew, the head of equity research at United Securities in Muscat. “The OPEC+ deal puts a medium-term floor to the oil prices, So now the stage is set for a positive opening for Aramco.”
Al Rajhi Bank and National Commercial Bank, the kingdom’s two biggest lenders, climbed 1.6% and 3.1%, respectively. They contributed the most to the index’s positive performance.
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MIDDLE EASTERN MARKETS:
- Aramco has been “fairly valued and there is definitely some room to rally from here,” Aarthi Chandrasekaran, a portfolio manager at Shuaa Capital in Abu Dhabi, said in an interview with Bloomberg TV
- And the oil cuts by the Saudis were “very well-timed,” she said
- Yamama Cement and Arabian Cement climb 6.5% and 5.1%, respectively
- NOTE: Saudi cement companies have been outperforming the market in Saudi Arabia this year as investors bet on big projects in the kingdom
- Kuwait Finance House and Ahli United Bank rise 1.4% and 1%, respectively
- READ: KFH, AUB Merger Strengthens Corporate Edge, Cuts Turkey Exposure
- Arabtec climbs 14% in Dubai, extending increase to a third session. Stock recovers from loss of 34% in November
- Equity markets in Bahrain, Kuwait, Qatar and Israel advance as much as 0.8%. Gauges in Dubai, Abu Dhabi, Oman and Egypt fall as much as 0.9%
- MORE, on Dec. 6: Qatar Says Holding Talks With Saudi Arabia to End Gulf Crisis
--With assistance from Manus Cranny.
To contact the reporter on this story: Filipe Pacheco in Dubai at fpacheco4@bloomberg.net
To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, James Amott, Sara Marley
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