Sunday, 29 March 2015 17:31
DUBAI: Stock markets in Saudi Arabia and Egypt rose in early trade on Sunday as panic over the military conflict in Yemen, which prompted sell-offs last week, subsided.
The intervention in Yemen may be protracted; a Gulf diplomatic official told Reuters on Saturday that while the Arab alliance initially plans a month-long campaign, the operation could last five or six months.
But while the start of the operation triggered profit-taking by retail investors last week, many analysts think the Gulf states will be able to confine the conflict to Yemen’s borders, as they have with past instability in that country. The operation may cost the Saudi government billions of dollars but with over $ 700 billion of net foreign assets, it can afford the cost.
The main Saudi index climbed 1.7 percent, largely because of property developer Jabal Omar, which surged 5.4 percent. The company said on Thursday it had sold residential units worth 70.1 million riyals ($ 18.7 million) and would use the proceeds to fund further construction.
Saudi Kayan Petrochemical Co jumped 3.1 percent after it restarted its olefins plant in Jubail following an extended shutdown. Its parent company Saudi Basic Industries gained 1.0 percent.
Egypt’s bourse climbed 1.0 percent in another broad rally. Real estate company Amer Group rose 1.0 percent after announcing it had begun construction of a 150 million dinar ($ 211 million) resort on Jordan’s Dead Sea coast.
Electro Cables Egypt jumped 2.9 percent after posting a 466 percent increase in 2014 net profit.
Copyright Reuters, 2015
