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 per cent to 6,048 points in the first 45 minutes as Saudi Basic Industries and the petrochemical sector as a whole both surged 2.1 per cent.
Alujain Corp, an industrial investment company focused on petrochemicals, jumped 5.7 per cent despite reporting a 36 per cent 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 per cent as Global Telecom gained 2.0 per cent 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.
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