Saudi shares rise while Oman hit by tax on telecom firms

 02 Jan 2017 - 5:45


Dubai: Saudi Arabia’s stock market rose yesterday with much activity focusing on second- and third-tier stocks rather than blue chips, while Oman’s bourse was dragged down by a higher tax on telecommunications companies.
The main Saudi index added 0.4 percent. Banking stocks were soft but major gains were seen in a few stocks such as conglomerate Jazan Development, which jumped 5.4 percent after announcing a 0.50 riyal per share dividend for 2016. Saudi Automotive Services surged its 10 percent daily limit after saying it would post a special gain of 4.4m riyals ($1.2m) for the fourth quarter after selling two of its equities investment portfolios. In Oman, the stock index dropped 0.7 percent as Oman Telecommunications tumbled 4.3 percent and rival Ooredoo Oman sank 7.9 percent.
On Thursday, the Capital Market Authority said Oman’s telecommunications companies would pay a royalty to the government of 12 percent of revenues in 2017, up from 7 percent.
Other markets in the Gulf, as well as Cairo’s exchange, were closed for New Year holidays.