Petchems lift Saudi, Global Telecom aids Egypt

February 28, 2016 4:27 pm

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.



Mujeeb Rahman
By Mujeeb Rahman
Mujeeb Rahman is a business journalist at AMEinfo. His areas of focus include economy, markets, politics and international relations in MENA and Asia-Pacific regions. An ex-BBC digital journalist, he delves deeper into the subjects that matter most.