Saudi Arabian Shares Advance for Sixth Day on Earnings Reports

Saudi Arabia’s benchmark stock index rose to the highest level in almost two weeks, led by Savola Group (SAVOLA) and Saudi Arabian Cement Co. (SACCO) as earnings beat estimates.

Savola, a food retailer, advanced to a more than six-year high, while Saudi Arabian Cement, the kingdom’s second-biggest producer of building materials by market value, increased to the strongest since March 20.

The Tadawul All Share Index (SASEIDX) gained 0.3 percent to 7,144.50, the highest since April 15, at 2 p.m. in Riyadh.

“Today’s trading session follows the completion of first- quarter earnings results being released, which showed an increase in cement, agricultural and food-processing sectors, which is evident in today’s trading led by Savola,” Turki Fadaak, head of research and consultancy at Albilad Investment Company, said in an e-mail.

Savola posted a 22 percent increase in first-quarter profit and said it expects net income to increase further in the three months through June. Saudi Arabian Cement (ARCCO)’s posted a 4.5 percent increase in first-quarter profit to 340.3 million riyals.

Savola rose 2.2 percent to 47 riyals and Saudi Arabian Cement climbed 1.6 percent to 97.25 riyals.

Saudi Arabia’s stock exchange is the only Persian Gulf bourse that operates on Saturdays.

To contact the reporter on this story: Deema Almashabi in Riyadh at dalmashabi@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

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