The Saudi Arabian stock market ended higher on Wednesday as shares of state-owned oil giant Aramco surged the maximum permitted 10% on their debut, while other major Gulf markets also rose.
Shares of Saudi Arabian Oil Co (Aramco) soared to 35.2 riyals ($9.39), up from the initial public offering (IPO) price of 32 riyals. The
If Aramco shares gain 10% on Thursday as well, it will exceed the $2 trillion valuation coveted by Prince Mohammed. The company is expected to be included in the MSCI emerging markets index on Dec. 17.
Aramco raised $25.6 billion on Dec. 5 through the IPO. It plans to exercise the 15% greenshoe option in whole or part during the first 30 days of its trading period. If the option is exercised in full, the oil giant could raise $29.4 billion in IPO.
The Saudi benchmark index added 0.8% with Riyad Bank and Al Rajhi Banking & Investment Corp gaining 4.5% and 0.6%, respectively.
Elsewhere, Prince Alwaleed bin Talal's firm Kingdom Holding Co leapt 9.9%, to become the top gainer on the index.
In Dubai, the index gained 1% as Emirates NBD Bank climbed 3.3% and Dubai Islamic Bank increased 0.6%.
Dubai's economy will grow 3.2% in 2020, accelerating from expansion of 2.1% in 2019, the Department of Economic Development (DED) was cited as saying in a Twitter posting by the Dubai Media Office.
The Abu Dhabi index closed up 0.4%, driven by a 0.9% rise in telecoms firm Etisalat and a 1.1% gain in First Abu Dhabi Bank .
The Qatari index ended 0.2% up, with market heavyweight Industries Qatar rising 2.2% and Commercial Bank was up 1.1%.
However, Egypt's blue-chip index fell 0.6% with 23 of its 30 stocks ending in the red, including Sidi Kerir Petrochemical , which plunged 9.6% and Juhayna Food, which lost 5.5%.
($1 = 3.7500 riyals)
(Reporting by Ateeq Shariff in Bengaluru; Editing by Rashmi Aich) ((AteeqUr.Shariff@thomsonreuters.com; +918067497129;))