TASI recovers; banks rise on improved outlook

Saudi Arabian shares recovered slightly on Tuesday with the benchmark Tadawul All Share Index (TASI) closing 0.3 percent higher at 6,873.

Volumes also improved slightly to SAR 2.9 billion, while the advances- declines ratio was 125/45.

Capital goods bounced back after losses in the previous session. Most other sectors too advanced. Banks saw some gains after listless performances earlier in the week.

The Abu Dhabi Investment Company (Invest AD), said in a report that Saudi banks are likely to continue to perform well this year, especially if liquidity conditions continue to improve.

“And in a rising interest-rate environment, they should see net interest margins widen, as their funding is largely made up of individual customer deposits – and these types of deposit rates can usually be held down while lending rates rise,” the note said.

Blue chip National Commercial Bank was over 1 percent up at SAR 38.50. Saudi British Bank added over 2 percent while Al Rajhi Capital made more modest gains.

Arab National Bank, recovering from its post-dividend lull, rose a robust 1.3 percent.

Elsewhere, Nadec was again among the top gainers today; up 6 percent to SAR 29.70 amid hectic trading activity.

In contrast, Riyad Bank fell nearly 2 percent to SAR 10.40 and Saudi Public Transport fell 3 percent to SAR 14.50 as they went ex-dividend.

Write to Brinda Darasha at brinda.d@argaamplus.com