DUBAI, Sept 29 (Reuters) – Weak oil prices and commodity-related shares hit Saudi Arabia’s stock market on Tuesday as it reopened after a long Eid al-Adha break. Egypt’s market edged down only slightly, reflecting an improving technical outlook for that market.
The Saudi stock index sank 1.4 percent in the opening minutes. Brent crude has dropped about 3 percent to around $47.50 a barrel since the Saudi bourse last traded on Sept. 21; this weighed on Saudi petrochemical shares, with Saudi Basic Industries down 1.6 percent.
Miner Ma’aden slipped 2.4 percent amid a global sell-off in commodity-related shares because of concern about flagging economic growth in Asia.
Egypt’s market was only slightly affected by the weakness of global equity prices; its index edged down 0.1 percent. Amer Group, which had surged 5.4 percent on Monday after saying it had won regulatory approval for a previously announced plan to split into two companies, added a further 1.3 percent.
In recent days the Cairo market has shown preliminary technical signs of beginning to bottom out from a long downtrend since February.
The Cairo index’s 0.9 percent rise to 7,409 points in active trade on Monday confirmed a bullish right triangle formed by the highs and lows since late August – a positive short-term reversal pattern.