Saudi shares climb to 7-month high on oil

Saudi shares climb to 7-month high on oil

RIYADH — Saudi Arabian shares on Saturday rose to a seven-month high, following US equity and oil price gains after economic data signaled the recovery in the world’s largest economy may strengthen next year and boost fuel demand.

By (Bloomberg)

Published: Sun 19 Dec 2010, 11:21 PM

Last updated: Mon 6 Apr 2015, 10:09 AM

Saudi Basic Industries Corp, the world’s largest petrochemicals maker popularly known as Sabic, and Al Rajhi Bank, the kingdom’s largest publicly-traded lender by market value, led the advance.

The Tadawul All Share Index gauge gained one per cent, the most in two weeks, to 6,563.58 points, the highest level since May 12. The gauge has risen 3.9 per cent since the start of December.

“Positive performance from the U.S. markets and oil during the weekend has given support to the Saudi market for its highest close since Mid May,” said Fuad Aghabi, investment director at Ajeej Capital in Riyadh.

US stocks rose yesterday for a third week, sending the Standard & Poor’s 500 Index to a two-year high at 1,243.91 points.

Crude gained as the index of US leading economic indicators increased in November by the most in eight months, a signal the recovery will strengthen next year and boost fuel demand. Oil gained 0.3 per cent this week, settling at $88.02 a barrel on the New York Mercantile Exchange yesterday. Saudi Arabia holds one-fifth of the world’s proven oil reserves. Sabic rose 1.7 per cent, the most since December 7, to SR105.50 ($28.13). Al Rajhi Bank gained one per cent to SR79.5.

Jabal Omar Development Company, a real-estate developer, soared 10 per cent, the most since October 2008, to SR17.7.

“Investors continue to add in the petrochemical sector in anticipation of solid quarterly results based on higher petrochemical prices,” said Aghabi. National Industrialisation Company gained two per cent to SR35.3, its highest level since September 2008. Saudi Arabian Fertilizer Company advanced 1.5 per cent, the most since November 8, to SR155.75.

Kingdom Holding Company, the investment company owned by Saudi billionaire Prince Alwaleed bin Talal, surged 5.8 per cent to SR8.25 after its board recommended paying SR137.5 million, or SR0.125 a share, in quarterly dividends during 2011.

Saudi Arabia’s index is the only Gulf Arab benchmark tracked by Bloomberg that trades on a Saturday. —

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