Nov. 24 (Bloomberg) -- Gulf stocks advanced, with Saudi Arabia’s benchmark gaining the most in a week after Iran signed an accord with world powers on its nuclear program.
The Tadawul All Share Index increased 0.5 percent, the most since Nov. 17, to 8,380.67 at 1:32 p.m. in Riyadh. Saudi Basic Industries Corp., the world’s second-biggest chemicals maker, rose 1.4 percent, while Bank Al-Jazira climbed the most in three week. The BGCC200 Index of Gulf shares, Kuwait’s gauge and Qatar’s rose 0.4 percent.
The Iranian accord breaks a decade-long diplomatic stalemate, setting limits on the Islamic Republic’s nuclear program in exchange for relief from sanctions. The agreement with Iran, which is separated from the Gulf by the Strait of Hormuz, is the first to be reached since the country’s atomic energy work came under international scrutiny in 2003, and may help avert a nuclear arms race in the region.
“The Iran deal is very good as it will benefit the GCC economies in the long term,” Tariq Qaqish, who oversees about 500 million dirhams ($136 million) as head of asset management at Dubai-based Al Mal Capital PSC, said by phone today. “It will enhance the trade between the Gulf and Iran.”
Sabic climbed to 109.5 riyals, while Bank Al-Jazira jumped 2.5 percent, the most since Nov. 3, to 36.3 riyals.
Dubai’s benchmark index, up 77 percent this year, lost 0.5 percent, while Abu Dhabi’s ADX General Index declined 0.3 percent. Bahrain’s measure dropped 0.3 percent and Oman’s MSM30 fell 0.1 percent.
To contact the reporter on this story: Sarmad Khan in Dubai at email@example.com
To contact the editor responsible for this story: Claudia Maedler at firstname.lastname@example.org