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Monday, 26 September 2016

MIDEAST STOCKS-Saudi banks rally on central bank monetary action | Reuters

MIDEAST STOCKS-Saudi banks rally on central bank monetary action | Reuters:

"Saudi banking shares rallied on Monday after the central bank said it would deposit about 20 billion riyals at commercial lenders and introduce two new money market instruments to fight a surge in market interest rates caused by low oil prices.

Riyadh's main index was up 0.6 percent after 15 minutes of trade as four-fifth of the banking shares rose. Samba Financial Group was the top gainer in the industry, up 2.3 percent to 18.20 riyals ($4.85).

Banking shares have been underperforming the general index in several months, hit by an illiquid construction sector, which makes up a large portion of corporate loans. Samba, for example, is trading at a 26 percent discount to its average fair value as estimated by 13 analysts, according to Reuters data."



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