Saudi Stocks Jump to 6-Year High on Ownership Rules; Dubai Gains - Bloomberg

Saudi Stocks Jump to 6-Year High on Ownership Rules; Dubai Gains - Bloomberg:



"Stocks in Saudi Arabia advanced to the highest since January 2008 after the world’s top oil producer proposed shareholding caps as it prepares to grant foreign investors access to the bourse. Dubai’s gauge also rose.



The Tadawul All Share Index (SASEIDX) climbed 1.6 percent to close at 10,903.04. Banking stocks led the advance, with Alinma Bank surging 9.7 percent to the highest level on record. Al Rajhi Bank, the largest traded Islamic lender globally, rose 2 percent. Dubai’s DFM General Index (DFMGI) climbed 1.1 percent.



Saudi Arabia, the Middle East’s biggest economy, is removing barriers to one of the world’s most restricted stock markets as the kingdom pursues a $130 billion spending plan to boost non-energy industries. The country’s bourse may be added to MSCI Inc.’s emerging-markets gauge by 2017 at the earliest, Sebastien Lieblich, executive director at MSCI Index Research, said in July. That may translate into about $35 billion to $40 billion of inflows, John Burbank, founder of Passport Capital LLC, wrote in an e-mail on Aug. 21."



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