Stock News: Egypt, Saudi Slide; Funds Start Buying In UAE, Qatar

Stock markets in Saudi Arabia and Egypt fell in early trade on Tuesday while funds tracking MSCI’s emerging markets index started buying several stocks in the United Arab Emirates and Qatar ahead of scheduled adjustments to the benchmark.

Saudi Arabia’s index fell 1.2 per cent, with most stocks in the red. Saudi Basic Industries lost 1.2 per cent, while food maker Savola Group and Al Rajhi Bank were down 2.9 and 1.1 per cent respectively.

Egypt’s bourse slid 1.1 per cent as Commercial International Bank fell 1.4 per cent and most other stocks also declined.

Meanwhile, bourses in the UAE and Qatar began recouping early-session losses as stocks whose weightings in MSCI’s emerging markets index are set to increase topped trading volumes.

Emaar Properties was up 1.3 per cent and Dubai Islamic Bank edged up 0.3 per cent. Qatar National Bank climbed 2.2 per cent and Industries Qatar gained 1.6 per cent.

The weightings of those stocks, and some others, in MSCI’s emering markets benchmark will double after Tuesday’s closing.