Saudi Shares Extend Gains for Sixth Day on Global Recovery, Oil
Saudi Arabian shares rose for a sixth day, sending the benchmark index to its highest level in more than three years, after U.S. and emerging market stocks advanced on signs of a global economic recovery and oil rallied.
Al Rajhi Bank (RJHI), Saudi Arabia’s largest publicly-traded lender by assets, advanced to its highest price in almost 10 months, climbing 2 percent to 77 riyals ($20.53). Saudi Basic Industries Corp. (SABIC), the world’s largest petrochemicals maker, known as Sabic, gained 0.8 percent, rising for a fifth day, to 101.25 riyals.
The Tadawul All Share Index (SASEIDX) rose 0.6 percent to 7,075.86 at the 3:30 p.m. end of trading in Riyadh, its highest close since Sept. 28, 2008. The 151-member index’s six-day rally is the longest since a 10-day surge that ended on Feb. 5. The volume of shares traded was 504 million, the highest since Feb. 1.
“The index is getting support from global market closes in the past week,” said Turki Fadaak, head of research at Riyadh- based Albilad Investment Co. “Bank and petrochemical shares are gaining in an optimistic atmosphere boosted by speculation the market will open to foreign investors soon.”
U.S. stocks rose this week, driving the Standard & Poor’s 500 Index to the highest level since 2008, while emerging-market equities advanced for a second week as oil neared a 10-month high. The MSCI Emerging Markets Index (MXEF) rose 0.8 percent at the close in New York yesterday.
Crude oil for April delivery added 1.8 percent to $109.77 a barrel on the New York Mercantile Exchange yesterday, the highest settlement since last May. The front-month contract increased 6.3 percent this week. Crude’s seven-day advance was the longest since the period ended Jan. 6, 2010. Saudi Arabia, the world’s biggest crude exporter, depended on oil for 93 percent of its revenue in 2011.
Foreign Entry
Saudi Arabia’s Capital Market Authority is in discussions with international banks to open the country’s stock exchange to foreign investors in early 2012, three bankers familiar with the matter said in October. Investors outside the Persian Gulf currently can’t directly invest in Saudi shares. The kingdom hasn’t set a timeline for opening its market to foreigners, stock exchange Chief Executive Officer Abdullah Al-Suweilmy said in December.
Turkey halted anti-dumping duties on petrochemicals imported from Saudi Arabia, al-Eqtisadiah reported today, citing Turkish officials unidentified by name.
Kingdom Holding Co. (KINGDOM), an investment company controlled by Saudi billionaire Prince Alwaleed bin Talal, gained 1.4 percent, the largest increase since Feb. 13, to 11.10 riyals. The board of the Riyadh-based company recommended distributing 0.125 riyal a share in quarterly dividends from retained profit this year.
Saudi Arabia’s stock exchange is the only Gulf Arab bourse that opens on Saturdays.
To contact the reporter on this story: Mourad Haroutunian in Riyadh at mharoutunian@bloomberg.net
To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net
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