Saudi post-budget rally stalls near chart barrier; rest of Gulf firm
* Saudi edged down 0.1 per cent to 7,181 in the first 20 minutes of trading
* Tadawul index added 1.5 per cent to 7,191 points on Sunday
* Dubai and Abu Dhabi markets rose 0.6 per cent and 0.8 per cent respectively
The Saudi Arabian stock market’s post-budget rally lost steam early on Monday as the index neared a technical resistance, while other major Gulf bourses were firm in quiet trade.
The Saudi index added 1.5 percent to 7,191 points on Sunday in reaction to Riyadh’s modestly expansionary state budget for 2017.
But it faces technical resistance on this year’s peak of 7,235 points, hit earlier this month, and edged down 0.1 percent to 7,181 in the first 20 minutes of trading on Monday.
Utility Saudi Electricity, which jumped 8.7 percent on Sunday after the government said in the budget it would raise domestic fuel and electricity prices by unspecified margins later this year, rose a further 0.9 percent.
Petrochemical stocks continued to outperform slightly after the budget plan pledged not to raise gas feedstock prices before 2019. Most other shares were little changed.
UAE markets rise
In Dubai, the index edged up 0.6 percent, led by amusement park operator DXB Entertainments, which was the most heavily traded stock and gained 3.1 percent.
Abu Dhabi rose 0.8 percent, helped by a 1.4 percent gain in telecommunications firm Etisalat, which continued rising after saying on Sunday that it was ending its management agreement with Saudi affiliate Mobily.
Qatar edged up 0.3 percent as Qatar National Bank climbed 1.2 percent.