Saudi Arabian Stocks Rebound From Losses Amid High Volatility

(Bloomberg) -- Saudi Arabia’s main stock gauge erased losses even as the kingdom continues to face questions about the killing of a government critic in Istanbul.

The Tadawul All Share Index rose 0.2 percent at the close on Sunday, rebounding from an earlier drop of as much as 3.8 percent, the most in the Middle East. The gauge climbed 1.6 percent last week as some traders speculated that state-linked funds were propping up shares amid high volatility.

Saudi Arabian Stocks Rebound From Losses Amid High Volatility

The oil-rich kingdom said an initial probe showed that the journalist Jamal Khashoggi was killed after “discussions” at the consulate in Istanbul turned physical, reversing earlier denials of involvement in his disappearance. U.S. President Donald Trump, after initially calling the Saudi statements a “good first step,” said Saturday that it’s a concern the officials haven’t said where Khashoggi’s body lies.

“There is still a layer of investor uncertainty around the reaction from different world leaders that is encouraging the mixed performance in the Saudi index,” said Jameel Ahmad, head of currency strategy and market research at foreign exchange brokerage FXTM.

MORE ON KHASHOGGI’S DEATH:

MIDDLE EASTERN MARKETS:

  • Al Rajhi Bank’s 2.3% advance was the biggest contributor the increase in Saudi stocks. The equity sank as much as 4.4% earlier
    • Riyad Bank +3.2%; Savola +6.8%; Banque Saudi Fransi +2.9%
    • Sipchem fell 3.5% even after reporting third-quarter profit that beat the highest analyst estimate
  • Stock gauges in Abu Dhabi and Dubai dropped 0.9% and 0.8%, respectively
    • First Abu Dhabi Bank fell 1.4%, contributing the most to Abu Dhabi index’s loss
      • NOTE: First Abu Dhabi Bank shares are still up 42% YTD
    • Emirates NBD was unchanged at 9 dirhams in Dubai
      • NOTE: A Sberbank executive said there is no reason to review the price of the Turkish unit the sale of which it is negotiating with Emirates NBD. Earlier this month, Emirates NBD was said to weigh paying less in the deal for Denizbank
  • Qatar’s QE Index fell 0.4%, after climbing 3.4% last week
    • Qatar Islamic Bank, Qatar Electricity & Water and Masraf Al Rayan drop between 0.5% and 1.5%
  • Egypt’s EGX 30 retreats 0.9%
    • The govt. said Oct. 19 it was postponing plans to sell a stake in its tobacco monopoly, attributing the decision to market conditions
    • Global Telecom fell as much as 9.7%, the most among 30 index members, after minority shareholders said an offer by Veon was understating the company’s value
    • MORE, on Oct. 16: IPO Flop Sounds Alarm Before Egypt’s $6 Billion Selling Push
    • READ: BP’s $1 Billion Deal to Sell Egyptian Oil Fields Collapses
  • Gauges in Israel, Kuwait and Bahrain declined between 0.1% and 0.5%, while Oman’s main gauge climbed 0.2%

OTHER EMERGING MARKETS:

  • MSCI Emerging Markets Index fell 0.9% last week, extending its drop this month to 7.3%, while a gauge of emerging-market currencies advanced a second week in a row
    • EM Review: Stocks in Doldrums as Fed Hike, Trade Risks Persist
  • Goldman Says Time to Buy the Dip in Beaten-Down Emerging Markets
  • WhatsApp Bans More Than 100,000 Accounts in Brazil Election
  • U.S. Charges Russian With Midterm Election Interference
  • World’s Worst Currency Heading for Best Month Since 2003: Chart

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