Petchems lift Saudi, Global Telecom aids Egypt
Petrochemical stocks led Saudi Arabia’s stock market higher in early trade on Sunday after oil prices rose sharply last week, while Egypt’s bourse rose on the back of Global Telecom, a favourite of foreign investors.
The Saudi index gained 1.2 percent to 6,048 points in the first 45 minutes as Saudi Basic Industries and the petrochemical sector as a whole both surged 2.1 percent.
Alujain Corp, an industrial investment company focused on petrochemicals, jumped 5.7 percent despite reporting a 36 percent drop in last year’s net profit.
The index is now close to technical resistance on the early February and end-January peaks of 6,056-6,099 points; any break would turn it short-term bullish.
Egypt’s index added 0.9 percent as Global Telecom gained 2.0 percent to 2.02 Egyptian pounds. In a report on Thursday, AlphaMena Research rated the stock a “buy” with a six-month target price of 6.75 pounds, citing attractive valuations despite concern over its Algerian subsidiary.