Saudi Stocks Lead Gulf Gains on Global Growth Confidence, Oil; Sabic Rises

Saudi Arabia’s benchmark stock index rose to the highest in more than two weeks, leading gains in Gulf markets, after Chinese manufacturing quickened more than expected and as oil rebounded from a one-week low.

Saudi Basic Industries Corp., the world’s biggest petrochemical maker known as Sabic, increased 1.5 percent and Kingdom Holding Co. gained the most since April after its hotels unit completed a $145 million stake sale. The Tadawul All Share Index advanced 0.9 percent to 6,158.99, the highest since Aug. 17, at the 3:30 p.m. close in Riyadh. The Bloomberg GCC 200 Index climbed 0.8 percent.

“The rise is mostly because of sentiment to do with international markets and positive data out of the U.S. and Asia,” said Amro Halwani, a trader at Shuaa Capital PSC in Riyadh. “Petrochemicals were oversold, and when oil held firm around its current levels, the sector picked up momentum.” Buying before the Muslim Eid holiday also boosted confidence among retail investors, Halwani said.

The MSCI Asia Pacific Index gained 1.5 percent after China’s Purchasing Managers’ Index rose to 51.7 in August from 51.2 in July, exceeding the median 51.5 forecast in a Bloomberg survey of 17 economists. The Standard & Poor’s 500 Index advanced yesterday after gains in home prices and consumer confidence tempered concern the U.S. economy is faltering.

Crude for October delivery increased as much as 1.4 percent to $72.92 a barrel. Yesterday, it fell 3.7 percent to $71.92, the biggest drop since June 4 and the lowest settlement since Aug. 24. Saudi Arabia holds one-fifth of the world’s proven oil reserves.

Volumes

The Islamic holy month of Ramadan, when Muslims fast from sunrise to sunset and business activity slows, began Aug. 11. Almost 71 million shares traded in Riyadh today, compared with a six-month daily average of 143 million. Gulf states will celebrate the Eid holiday, which marks the end of Ramadan, next week.

Sabic advanced to 86 riyals, the highest since Aug. 17. The stock lost 2 percent last month. Kingdom jumped 5.9 percent to 8.10 riyals. Lodging unit Kingdom Hotel Investments completed the sale of its 43.7 percent stake in the Four Seasons Hotel Cairo Nile Plaza.

The Dubai Financial Market General Index climbed 0.2 percent. Qatar’s gauge and Bahrain’s measure increased 0.3 percent. The Kuwait Stock Exchange Index lost 0.2 percent and Abu Dhabi’s ADX General Index slipped 0.3 percent. Oman’s MSM30 Index rose less than 0.1 percent.

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

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