Saudi Arabia’s Tadawul All-Share Index slipped 0.5 percent on Monday in the heaviest trade since April.
On Sunday, it had gained 1.1 percent on the oil-deal news; many institutional investors think the petrochemical sector is now fairly valued.
“The positive news with regards to OPEC and to the improving financial position of the government after the bond issuance in October has now been fully reflected in market prices. Now investors are repositioning portfolios in preparation for the state budget announcement before the end of the year,” said Jassim Aljubran, analyst at Aljazira Capital.
SABIC falls 1.3%
Another round of subsidy cuts is expected in the budget, Aljubran added, but he believes the worst for Saudi companies is now largely behind them.
On Monday investors dumped most petrochemical shares with bellwether producer Saudi Basic Industries Corp (SABIC) dropping 1.3 percent.
Insurance drops 1.4%
The insurance sector, favored by local retail investors, also sold off, declining 1.4 percent.
Stock markets in the United Arab Emirates (UAE) and Qatar jumped as crude oil prices shot to their highest since mid-2015.
Brent crude soared as high as $57.89 per barrel on Monday morning in response to the weekend deal between OPEC and non-OPEC producers to cut output.
The index in Dubai, which was closed on Sunday for a public holiday, climbed 2.8 percent to 3,657 points, its highest finish this year, in the heaviest trade since March.
It rose above technical resistance on its August peak of 3,624 points. Any clean break of that resistance — a second straight daily close above it — would be technically bullish, pointing up to the October 2015 peak of 3,740 points.
Eighty percent of traded shares advanced with the largest listed real estate developer, Emaar Properties, gaining 5.1 percent.
In Abu Dhabi, the index added 0.7 percent with the main support coming from a 2.2 percent gain in the largest listed stock, Etisalat. Abu Dhabi National Energy jumped 5.7 percent.
In Qatar, the index added a further 1.4 percent to 10,329 points, closing for a second day above technical resistance on its 200-day average.
Commercial Bank advanced 1.1 percent to 32.85 rials.
It said on Sunday it was offering 58.8 million new shares to rights holders at 25.50 riyals each; rights trading will start on Wednesday and end two weeks later.

Source: Arab News