Yanbu National Petrochemicals Co. of Saudi Arabia, the world’s largest oil exporter, surged the most in almost a year after improved U.S. jobs data boosted the outlook for global economic growth.
Shares of a unit of the world’s largest petrochemicals maker soared 4.9 percent, the most since April 18, to 53.25 riyals at the close in Riyadh. The stock was the second-biggest gainer on the benchmark Tadawul All Share Index, which rose 0.7 percent. About 1.5 million shares were traded, more than three times the three-month daily average. Saudi Basic Industries Corp., which owns 51 percent of Yansab, increased 0.3 percent.
The Dow Jones Industrial Average advanced to a record yesterday, erasing losses from the financial crisis after a four-year rally fueled by the fastest profit growth since the 1990s and monetary stimulus from the Federal Reserve. The MSCI World Index of developed global markets rose 0.3 percent to the highest intraday level since June 2008 at 8:58 a.m. in New York as a private jobs report showed companies took on more workers than estimated in February.
“The rise in global markets signaled that demand for petrochemicals may improve” which would boost earnings, Turki Fadaak, Riyadh-based head of research and consultancy at Albilad Investment Co., said by e-mail.
The Tadawul’s Petrochemical Industries Index gained 0.9 percent today as Brent crude traded near its highest level in four days. Yansab has gained 13 percent this year, outpacing the Tadawul’s 2.9 percent advance. The company may post a 14 percent advance in 2013 profit, according to the mean estimate of 13 analysts on Bloomberg. That compares with a drop of 23 percent last year, when crude oil declined 7.1 percent.
Twelve of the 14 companies in the Tadawul’s petrochemicals index gained today, with National Petrochemical Co. jumping 3 percent and Sabic unit Saudi Kayan Petrochemical Co. rising 0.9 percent. Nine analysts recommend investors buy the shares of Yansab, while eight have a hold rating on the stock, data compiled by Bloomberg show.