Saudi Shares Gain Most in One Month on Oil Price Rally, Bernanke Comments

Saudi Arabian shares rose the most in a month, after U.S. and European markets advanced and oil prices rallied on a pledge by U.S. Federal Reserve Chairman Ben S. Bernanke to maintain the U.S. economic recovery.

Saudi Basic Industries Corp., the world’s largest petrochemicals maker, known as Sabic, advanced to the highest since Aug. 23 after oil prices rose by $1.7 a barrel in the past week. The Tadawul All Share Index gauge gained 0.9 percent, the most since July 27, to 6,055.54, at the 3:30 p.m. close in Riyadh. The gauge pared its loss since the start of August to 3.6 percent.

“The market is reacting positively to a higher close for oil over the weekend,” said Anas Kassem, an investment analyst at Ajeej Capital in Riyadh, “in addition to Bernanke’s speech yesterday which helped western markets bounce back at the end of a difficult week.”

U.S, European and emerging-market stocks rose yesterday afterBernanke pledged to safeguard the recovery of the world’s biggest economy. The Dow Jones Industrial Average surged 1.7 percent, the Stoxx 600 gained 0.6 percent and the MSCI Emerging Markets Index advanced 0.4 percent.

Crude oil surged 2.5 percent, the most since Aug. 2, settling at $75.17 a barrel on the New York Mercantile Exchange. Futures gained 2.3 percent this week. Saudi Arabia holds one- fifth of the world’s proven oil reserves.

Sabic rose 1.5 percent, the most in three weeks, to 84.50 riyals. Al Rajhi Bank, the kingdom’s biggest publicly traded lender by market value, gained 0.7 percent, the most since Aug. 15, to 76.25 riyals. Etihad Etisalat Co., the second-largest mobile-phone operator, surged 2.4 percent to a one-week high of 52.50 riyals.

Almost 68 million shares, or about half this year’s daily average, traded on the 18th day of Ramadan, the Islamic month when Muslims fast from sunrise to sunset and business slows.

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

To contact the reporter on this story: Mourad Haroutunian in Riyadh at mharoutunian@bloomberg.net.

• Tweet
• More
  • Business Exchange
  • Buzz up!
  • Digg
• Print
• Email