JEDDAH — Saudi Arabia's stock market led gains in the Gulf on Wednesday after the Custodian of the Two Holy Mosques King Salman carried out major reshuffles in the line of succession and his Cabinet. Egypt's bourse rebounded on hopes for good news about taxes. The Saudi stock benchmark Tadawul All Share Index climbed 1.0 percent to 9,812 points. The benchmark rose above major technical resistance in the 9,572-9,745 point area, where the 200-day average roughly coincides with the March peak. Blue chips Saudi Basic Industries and National Commercial Bank were the main supports, surging 4.7 percent each. The economic policy significance of the changes is not yet clear but they were unexpected to many analysts. In the short term at least, they could increase uncertainty. However, many investors appeared to view the changes as a positive sign that the government would put fresh emphasis on stimulating economic growth. “I don't think there will be a reversal of any policies - I see it as a fresh impetus” for economic reforms, said John Sfakianakis, Gulf region director at fund management firm Ashmore Group in Riyadh. The move of the highly regarded Fakieh to the economy portfolio could mean labor reforms to push Saudis into private sector jobs over the past several years have essentially been judged a success, and that the government now wants to focus on other structural reforms of the economy, which have been slow. Elsewhere, Dubai's stock index rose 0.8 percent to 4,215 points, approaching major chart resistance at 4,250 points, its 200-day average. Other markets were less bullish. Abu Dhabi inched up 0.1 percent and Qatar added 0.3 percent. Doha-listed Barwa Real Estate surged as much as 5.1 percent in early trade, coming close to November's multi-year peak of 54.20 riyals, but then pulled back and closed 0.2 percent lower. Egypt's index rose 1.9 percent to 8,488 points in a broad rally on hopes that the government would review its approach towards taxing stock market investors. — SG/Agencies
