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Mon 11 Nov 2019 08:19 AM

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Kuwait, Saudi Arabia stocks climb after MSCI review

Kuwait's index advanced as much as 1.8% after MSCI said it will increase the weight of National Bank of Kuwait SAK, the country's biggest lender

Kuwait, Saudi Arabia stocks climb after MSCI review

In Riyadh, Arab National Bank climbed as much as 5.4% after MSCI said it will add the stock to its emerging-markets index. It finished at the highest level in over a month.


Stocks in Kuwait and Saudi Arabia rose the most in the Gulf as investors reacted positively to a review by index compiler MSCI late last week.

Kuwait’s index advanced as much as 1.8% after MSCI said it will increase the weight of National Bank of Kuwait SAK, the country’s biggest lender, within its benchmarks. That’s “a big positive surprise,” analysts at EFG-Hermes said. NBK’s shares gained as much as 4.3%, the most in two years.

In Riyadh, Arab National Bank climbed as much as 5.4% after MSCI said it will add the stock to its emerging-markets index. It finished at the highest level in over a month.

Investors were also perusing the prospectus of Saudi Aramco’s initial public offering, which will take place in Riyadh. Saudi Arabia will allow investors to start bidding for shares in the world’s most-profitable company from Nov. 17. While the document didn’t disclose the number of shares to be sold, it will allocate up to 0.5% of the stock to individual investors.

Highlights:

  • The MSCI Emerging Markets Index rose 1.5% in the five days through Nov. 8, and an index tracking currencies from developing countries climbed 0.1%
  • NBK ends 2.8% higher at KW0.962, boosting the Premier Market index 1.1%. Finishes at the highest level since Sept. 25
  • Arab National Bank climbs 2.1% to finish at SAR23.30
  • National Agriculture Development Co. gains 2.7%, the most in two weeks, after proposing a 20% capital increase through the distribution of one bonus share for every five held
  • The Tadawul All Share Index advanced 1%
  • Emirates NBD falls 2.2% in Dubai, dragging down the DFM General Index, which drops 1.4%
  • Emaar Development slumps 7.2% after being excluded from MSCI’s main indexes