Kuwait, Saudi stocks climb after MSCI review

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 per cent 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 per cent, the most in two years.

In Riyadh, Arab National Bank climbed as much as 5.4 per cent 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 per cent of the stock to individual investors.

HIGHLIGHTS:

* The MSCI Emerging Markets Index rose 1.5 per cent in the five days through Nov. 8, and an index tracking currencies from developing countries climbed 0.1 per cent

* NBK ends 2.8 per cent higher at KW0.962, boosting the Premier Market index 1.1 per cent

* Arab National Bank climbs 2.1 per cent to finish at SAR23.30

* National Agriculture Development gains 2.7 per cent, the most in two weeks, after proposing a 20 per cent capital increase through the distribution of one bonus share for every five held

* The Tadawul All Share Index advanced 1 per cent

* Emirates NBD falls 2.2 per cent in Dubai, dragging down the DFM General Index, which drops 1.4 per cent

* Also in Dubai, Emaar Development slumps 7.2 per cent after being excluded from MSCI’s main indexes

* Exchanges in Bahrain, Oman and Egypt are closed for holidays