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Saudi stocks continue to rally amid hopes for reforms in foreign ownership; UAE stocks rebound on bargain-hunting

Saudi stocks continued their sharp rise in early trading on Thursday, following news that Capital Market Authority was considering allowing foreigners to own majority stakes of listed companies. The UAE markets recovered as investors purchased recently sold-off share.

Saudi Arabia's benchmark stock index rose 1.1% on the back of its largest single-day gain for more than five year after Bloomberg reported that regulators could ease the cap on foreign ownership to 49%, which would likely attract new foreign investment into the region's biggest equity market.

Al Rajhi Bank shares, the largest Islamic lender in the world, rose more than 5% after the steepest rise in almost two decades the previous session. Saudi National Bank rose by 4.4%, reaching a level not seen since nearly one and a half years ago.

Daniel Takieddine is the co-founder and CEO at Sky Links Capital Group. He said that a potential rule change could trigger foreign inflows of more than $10 billion and cause MSCI to increase Saudi Arabia's weightings in its index, increasing demand and valuations.

Dubai's main stock index recovered 0.3% following two sessions of sharp losses, thanks to a 1% increase in Emirates NBD Bank.

The shares of Salik, a toll operator, rose by 0.7% while Tecom Group gained more than 1%.

Abu Dhabi's Index edged up 0.2% to end a losing streak of two days, buoyed a 0.1% increase in International Holding Company.

ADNOC Drilling, a company that produces energy, has seen its shares rise by 0.5%. AI-driven space technology firm Space42 rose 0.5% as well after signing a contract with Dynamic Map (the U.S. subsidiary of Japan's Dynamic Map platform) to supply HD Map Data for General Motors Super Cruise in the UAE.

Qatar's stock market index dropped 0.4%, to a two-month low. Industries Qatar fell 1%, and Qatar Islamic Bank dropped 0.4%. (Reporting from Amna Mariyam, Bengaluru. Editing by Alex Richardson.

(source: Reuters)