PHOTO
DUBAI, June 8 (Reuters) - Saudi Arabia's stock market may edge higher on Wednesday as the government delivered a series of televised panel discussions with key ministers outlining a five-year economic transformation plan, while other Gulf bourses may hold onto recent gains as oil holds at 2016 highs.
On Monday, the government published a five-year National Transformation Plan (NTP), part of a wider set of reforms launched in April as "Vision 2030".
Finance Minister Ibrahim Alassaf said on Tuesday in a televised panel discussion in Jeddah that Saudi Arabia will pay for parts of its five-year economic reform plan by making efficiency savings and cutting spending on existing projects.
The plan, which sets targets for government agencies and includes spending on new initiatives in housing, healthcare, mining and renewable energy, will cost an estimated 270 billion riyals ($72 billion) to implement.
On Tuesday the stock market reacted positively to the NTP, with the index
"It is clear that there will be a huge push to generate more growth from the private sector and to encourage the small and mid-sized firms to contribute more to non-oil growth," said Jassim al-Jubran, senior analyst at Riyadh-based Aljazira Capital.
Jubran added that the plans, although were a good starting point, were not detailed enough to draw hard conclusions but overall he believes the short term will be challenging for some industrial companies as austerity weighs on profits.
Dar Al Arkan
Earlier that day shares in Dar Al Arkan jumped their 10 percent daily limit to close at 5.45 riyals.
Elsewhere in the Gulf, bourses may hold onto recent gains, as Brent prices
In Egypt the main index
The index may get a further boost after the currency strengthened on the black market, a sign that worries over further devaluation have abated, for now. Three currency traders cited 10.9 pounds per dollar as the black market rate on Tuesday, stronger than last week's rate of 11 pounds per dollar. The official rate is at 8.78 per dollar.
(Reporting by Celine Aswad; Editing by Gopakumar Warrier) ((celine.aswad@thomsonreuters.com; +971 4 4536886; Reuters Messaging: celine.aswad.thomsonreuters.com@reuters.net))
On Monday, the government published a five-year National Transformation Plan (NTP), part of a wider set of reforms launched in April as "Vision 2030".
Finance Minister Ibrahim Alassaf said on Tuesday in a televised panel discussion in Jeddah that Saudi Arabia will pay for parts of its five-year economic reform plan by making efficiency savings and cutting spending on existing projects.
The plan, which sets targets for government agencies and includes spending on new initiatives in housing, healthcare, mining and renewable energy, will cost an estimated 270 billion riyals ($72 billion) to implement.
On Tuesday the stock market reacted positively to the NTP, with the index
"It is clear that there will be a huge push to generate more growth from the private sector and to encourage the small and mid-sized firms to contribute more to non-oil growth," said Jassim al-Jubran, senior analyst at Riyadh-based Aljazira Capital.
Jubran added that the plans, although were a good starting point, were not detailed enough to draw hard conclusions but overall he believes the short term will be challenging for some industrial companies as austerity weighs on profits.
Dar Al Arkan
Earlier that day shares in Dar Al Arkan jumped their 10 percent daily limit to close at 5.45 riyals.
Elsewhere in the Gulf, bourses may hold onto recent gains, as Brent prices
In Egypt the main index
The index may get a further boost after the currency strengthened on the black market, a sign that worries over further devaluation have abated, for now. Three currency traders cited 10.9 pounds per dollar as the black market rate on Tuesday, stronger than last week's rate of 11 pounds per dollar. The official rate is at 8.78 per dollar.
(Reporting by Celine Aswad; Editing by Gopakumar Warrier) ((celine.aswad@thomsonreuters.com; +971 4 4536886; Reuters Messaging: celine.aswad.thomsonreuters.com@reuters.net))
