It Happened Again: Saudi Shares Defy All the Drama to Post GainsBy
Tadawul All Share Index erased losses as market closed
Stocks with sovereign wealth fund as biggest holder fare best
The roller-coaster ride for Riyadh stocks post the weekend crackdown played out for a fourth day: Saudi Arabian shares rose, even as nervousness among regional investors about perceptions of risks stemming from the kingdom battered neighboring markets.
The main equities benchmark erased earlier losses of as much as 1.1 percent to finish Wednesday at its session high and a little ahead of Tuesday’s close. Three companies controlled by the country’s sovereign wealth fund advanced at least 0.8 percent: Saudi Basic Industries Corp., National Commercial Bank and Saudi Telecom Co. were among the four biggest contributors to the Tadawul All Share Index’s gain.
The Public Investment Fund, the sovereign wealth fund, could be supporting the Saudi stock market, some tracking trading in Riyadh have said this week. The kingdom’s main index has fared better than benchmarks in its neighbors, where investors have cited heightened risks stemming from Saudi Arabia’s anti-corruption purge and a deepening feud with Iran as causing the losses.
The Tadawul has slipped about 0.3 percent so far this week, while gauges in Dubai and Kuwait ran up losses almost 20 times bigger. A spokesman for the PIF didn’t respond to requests for comment.