Saudi Index Set for Six-Year High After Lagging Peers, ADX Gains

Saudi Arabian stocks headed for their highest close in almost six years as investors shift funds into the Arab world’s largest bourse after it lagged regional peers this year.

The Tadawul All Share Index jumped 0.8 percent to 9,660.41, at 2:05 p.m. in Riyadh, poised for the strongest level since June 2008. Yamamah Saudi Cement Co. led the advance, increasing 7.3 percent in four times the three-month daily average volume. Trading on the Tadawul yesterday was almost 30 percent higher than its yearly average. Abu Dhabi’s gauge climbed 0.3 percent, taking its increase for the year to 18 percent today.

Shares listed on Saudi Arabia’s main index gained 13 percent this year, compared with a 49 percent increase for Dubai’s DFM General Index in 2014. Qatar’s QE Index jumped 23 percent and the Bloomberg GCC 200 Index climbed 15 percent.

“Asset managers are relocating some of their investments from markets which have been going up fast,” Mohammed Ali Yasin, managing director of NBAD Securities in Abu Dhabi said by phone. “We have seen the exit of some international investors from the United Arab Emirates and some of them have been relocating to Saudi, which had lagged.”

Qatar’s benchmark QE Index gained 0.4 percent, Kuwait’s, Muscat’s and Oman’s measures advanced 0.3 percent. Stock markets in Egypt and Bahrain are closed for the May Day holiday.

Israel’s TA-25 Index climbed 1.1 percent. The yield on the government’s benchmark bonds due March 2023 dropped four basis points, or 0.04 percentage point, to 3.15 percent.

To contact the reporter on this story: Sarmad Khan in Dubai at skhan170@bloomberg.net

To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net James Doran, Zahra Hankir

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.