Saudi shares continue to decline despite support from public funds

(Reuters) – Saudi Arabia fell sharply after the volatility of its deals Tuesday as foreign investors and individuals continue to sell, despite efforts by state-backed funds to contain the aftermath the murder of Saudi journalist Jamal Khashoggi.

The index fell 1.3% after offsetting some of the losses in the session.

The weak performance of the market coincides with the launch of a three-day investment conference organized by Riyadh and boycotted by Western politicians and leaders of international companies following Khashoggi's death.

Last week, foreign investors sold $ 1.07 billion worth of Saudi shares, the biggest sell since the opening of the foreign direct investment market in mid-2015.

"The recent downturn has revealed some value, but with all this turbulence and volatility, the outlook is totally nonexistent and we are not buying it yet," said Nick Wilson, director of Gulf Investment London Fund.

He added that the investment community will generally refrain from creating concrete centers until things get clearer.

But funds linked to the Saudi government have been supporting the market since October 14, when the index lost up to 7%, its biggest drop since December 2014. The index has fallen 5% since the beginning of the month. .

The Saudi public investment fund indirectly supports actions calling on local institutions to curb the market decline resulting from the Khashoggi affair, Reuters reported on Tuesday, citing informed sources.

However, Saudi Arabia plans to sign agreements worth $ 50 billion at Tuesday's conference.

Saudi Arabian Mining Co. (Maaden) grew 6.1% after signing a contract with South Korean Dilem for the construction of an ammonia plant worth 3.35 billion riyals (892, $ 98 million).

The Saudi Arabian Industrial Export Corporation (SODIC) outperformed the market, registering a 9.9% increase after a loss in the third quarter.

Jabal Omar Development grew 3.7% after posting earnings for the third quarter.

In Egypt, the main stock index lost 0.5%, while the fertilizer and chemical industries Abu Kir fell 8.7% and mineral oil in Alexandria, 11.7%.

In Dubai, Amanat Holding grew by 2.7% and Gulf Navigation Holding by 3.7%, after the Dubai Financial Market declared that direct transactions involving 82 million shares were valued at 80.4 million. dirhams.

The Dubai index rose 0.2%.

Dubai Ports World, listed on Dubai's Nasdaq, lost 4.8% despite a 6.7% drop in container shipments in the third quarter.

The Abu Dhabi index rose 0.3%, Arkan Building Materials jumped 12.9% and that of Emirates Driving 14.9%.

RAK Cement increased 4.5% after the Board of Directors approved the sale of a portion of the company's equity portfolio.

Here are the closing levels of the Arab stock market indices on Tuesday: