Arab News, Thursday, Apr 8, 2021 | Shaaban 25, 1442
Tadawul stock index crosses 10,000
Saudi Arabia:
The main Saudi share index broke through the 10,000 barrier on Wednesday as
banking and transportation stocks led gains.
The Tadawul All Share Index gained 0.25 percent to close at 10,014.30.
The Kingdom has introduced a raft of reforms to attract overseas share buyers,
which first opened to foreign investors in 2015. Ongoing reforms, a firmer oil
price and the rollout of vaccines has helped to boost investor sentiment in the
market, which is dominated by retail investors.
Saudi Central Bank Governor Fahad Al-Mubarak on Tuesday said he expected the
Kingdom's economic recovery to be “positive” this year, partly due to rebounding
oil prices.
“Even though we’re sacrificing a little bit in the production, however achieving
stable oil prices is good for Saudi Arabia, for producers, consumers and for the
region,” he said at a virtual event organized by the International Monetary Fund
(IMF).
Earlier the Fund raised its forecast on Saudi Arabia’s economic growth in 2021
to 2.9 percent, compared to its January’s projections of 2.6 percent.
Bank stocks were among the gainers on Wednesday with Saudi National Bank edging
0.2 percent higher.
Saudi Arabia’s $2.7 trillion 10-year domestic investment program could benefit
the Kingdom’s banking sector, Bank of America Merrill Lynch (BofA) said on
Tuesday.
“We think higher economic growth and increased demand for corporate debt could
also be a significant positive for the banking industry,” BofA MENA economist
Jean-Michel Saliba wrote in the report.