MIDEAST STOCKS-Fitch upgrade boosts Saudi shares; Dubai's volume lowest since August | Reuters

MIDEAST STOCKS-Fitch upgrade boosts Saudi shares; Dubai's volume lowest since August | Reuters:



"* Fitch upgrades Saudi rating to AA



* Trading volume highest in almost two years



* Signs of shift from physical real estate to equities



* "No fresh money" in Dubai



* Qatar continues bounce after diplomatic tiff



By Nadia Saleem

DUBAI, March 9 (Reuters) - Saudi Arabia's bourse rose to a 68-month high in heavy trade on Sunday after Fitch upgraded the country, while other regional share markets were narrowly mixed because of a lack of catalysts. Dubai's trading volume fell to its lowest level since last August.



Credit rating agency Fitch raised Saudi Arabia's long-term foreign and local currency issuer default ratings to 'AA' from 'AA-', citing strong balance sheets and government efforts to combat unemployment and a housing shortage, as well as the country's labour market reforms.



"The upgrade adds to the popularity of the market for foreign investors, which boosts the morale of local investors," said Abdullah Alawi, assistant general manager and head of research at Aljazira Capital. Foreigners can only invest indirectly in the Saudi market through instruments such as swaps, but their interest has been rising."



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