Saudi stocks hit record on oil, electricity gains

RIYADH — Saudi shares rose to a record high yesterday fuelled by resurgent world oil prices and a rise in Saudi Electricity Co., analysts said.

By (Reuters)

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Published: Fri 25 Feb 2005, 11:48 AM

Last updated: Thu 2 Apr 2015, 4:29 PM

The official share index of the Arab world’s biggest exchange closed the week at a fresh record of 8,867 points, after busy trade worth 3.62 billion riyals.

The gains cancelled out losses earlier in the week triggered partly by investors pulling money out to apply for shares in the newly-created Bank AlBilad, which was oversubscribed within a day and a half of launching its IPO on Monday.

US crude oil prices rose above $50 a barrel this week, giving another boost to the economy of the world’s biggest crude oil exporter. Saudi Electricity closed at 113.25 riyals, up more than 6 per cent on the week, after announcing plans to set up a subsidiary to transfer electricity between different regions.

Traders welcomed the move, part of the company’s efforts to improve its performance after a lacklustre fourth quarter last year.

Bakheet Financial Advisors said the market should remain broadly positive next week, unless oil prices sharply decline, but a technical retreat is likely during dividend distributions of the next two weeks.

“This technical retreat is expected to be slight and should not negatively reflect a decline in stock prices,” BFA said in a report.

Overall gaining shares outnumbered fallers by 58 to 9 yesterday. Insurance, telecoms and banking stocks were all broadly positive.


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