Saudi Stocks Start US Fed Week in Green; Arabian Drilling Ticks Up
Saudi Exchange-traded shares closed the session higher as investors turned their attention to regional developments in the Middle East and the US Federal Reserve's highly anticipated interest rate move on Wednesday.At the close of Monday trading, the Tadawul All Share Index closed 0.13% in the green. Out of 272 shares, 78 stocks closed higher, while 182 were lower."Delving into more detail now and the main event for markets will be the Fed's decision on Wednesday. Our economists have long expected a 25bp rate hike with the market now at 87% this morning up from around 35% two Friday's ago just before Warsh's Jackson Hole speech. Such a move would take the target range to 3.75%-4.00%. Our economists believe the accompanying projections are likely to show a somewhat stronger growth outlook alongside still-elevated inflation. They have also added an extra hike in March to their forecast which now makes it 75bps of hikes over the next 7 months," Deutsche Bank Research said in a note.Also making headlines is the postponement of Iran's meeting in Oman with other Gulf countries. The meeting was going to focus on the reopening of the Strait of Hormuz.Back at home, the Houthi group launched missiles and drones that targeted a Saudi Arabian military airbase. The Houthi group said the attacks were made in retaliation for Saudi strikes on Yemen.On the corporate front, Arabian Drilling (SASE:2381) secured a 2 billion-Saudi-riyal contract to supply land rigs for gas lump sum turnkey, or LSTK, operations. Shares of the oilfield services company closed 2.99% higher.
