Saudi Stocks Fall as Traders Prepare for Aramco’s IPO: Inside EM

(Bloomberg) -- Saudi Arabia’s benchmark equity index fell for a fifth session, as some traders prepare for Saudi Aramco‘s mammoth IPO by raising liquidity.

Gauges from Dubai to Kuwait and Doha rose, with the Qatari benchmark advancing the most in the Gulf. An index tracking stocks from developing countries climbed 1.5% on Friday after two days of talks concluded with the U.S. and China agreeing on the outline of a partial trade accord.

Saudi Stocks Fall as Traders Prepare for Aramco’s IPO: Inside EM

Aramco’s board is expected to give final approval for the share sale this week, according to people familiar with the matter.

Even though a timeline for the IPO is not defined, some investors could be already raising liquidity for the sale, said Ali Taqi and Vishal Gupta, from Rasmala Investment Bank in Dubai. “Domestic participation in Aramco’s IPO is expected to be strong and, more recently, Saudi investors have been net sellers in the market,” they wrote in response to questions.

HIGHLIGHTS:
  • The MSCI Emerging Markets Index rose 1.5% in the five days through Oct. 11, the first weekly advance in about a month
  • EM Review: Trade Accord Rally Halts Three-Week Stock Decline
  • MORE: EU Leaders May Impose Weapons Embargo on Turkey Over Syria

MIDDLE EASTERN MARKETS:

  • Equity indexes in Dubai, Abu Dhabi and Qatar rise between 0.3% and 0.6%
  • In Saudi Arabia, the Tadawul All Shares Index falls 0.8%, after rising as much as 0.9% earlier
    • A sector gauge tracking lenders pressures the index the most, down 1.2%
  • In Dubai, Arabtec finishes 8.9% higher, extending gains this month to 12%
    • Reuters reported last week that UBS is working with Arabtec, while Shuaa Capital is working with Trojan Holding for a potential merger
  • Kuwait’s Premier Market index up 0.2%
    • Ahli United Bank gains 0.4%. The lender said after last week’s close that Bahrain’s central bank is yet to approve a takeover by Kuwait Finance House
  • READ: Aramco Sale Tests Saudi Faith in Crown Prince’s Big Project

©2019 Bloomberg L.P.

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