Saudi Arabia’s stock market rose in early trade on Sunday and was set for a sixth straight session of gains, led by banking shares, which also bolstered the Dubai index.
The benchmark Saudi index edged up 0.1%, with the Kingdom’s largest lender National Commercial Bank increasing 1.6%, and Saudi British Bank gaining 1%.
The country’s banking sector continues to enjoy a high level of liquidity, the Kingdom’s central bank governor said on Sunday, according to Reuters.
The statement could allay market fears that Saudi oil giant Aramco’s initial public offering (IPO) - which could be the world’s largest so far - might soak up market liquidity as Saudi investors direct their wealth towards the offering.
The IPO has attracted approximately 73 billion riyals ($19.5 billion) in institutional and retail orders so far, Saudi Arabia’s Samba Financial Group said on Thursday.
The Dubai index rose 0.3%, helped by a 0.4% rise in Dubai Islamic Bank and a 3% gain in its top lender Emirates NBD.
In Abu Dhabi, the index was flat, with market heavyweight First Abu Dhabi Bank easing 0.1%, but Abu Dhabi Commercial Bank up 0.8%.