Saudi Shares Advance for Second Day, Led by Al Rajhi Bank, Tasnee, Yansab
Saudi Arabian shares led by banks climbed for a second day, reversing earlier losses.
Al Rajhi Bank (RJHI), the kingdom’s largest publicly traded lender by market value, advanced the most in two weeks. National Industrialization Co. (NIC), the petrochemicals company known as Tasnee, and Yanbu National Petrochemicals Co. (YANSAB), gained more than 1 percent.
The Tadawul All Share Index (SASEIDX) strengthened 0.2 percent to 6,138.06, the highest level since Sept. 4, at the 3:30 p.m. close in Riyadh, extending its monthly gains to 2.7 percent. The 148-company gauge dropped as much as 1.2 percent at 11:55 a.m.
“Banks and mid-cap names helped squeeze out a modest increase,” said Asim Bukhtiar, an equity analyst at Riyad Capital. “Lately banks have been oversold and investors may be tempted by attractive entry points ahead of the earnings season.”
Al Rajhi added 1.4 percent, the largest gain since Aug. 24, to 70.75 riyals. Tasnee rose 1.3 percent to 38.50 riyals while Yansab rallied 1.5 percent to 46.60 riyals, its highest price since Aug. 13.
“Crude pulled back on a strengthening dollar which bodes well in terms of import costs for Saudi companies, if the trend continues,” said Bukhtiar, the Riyad Capital analyst.
Oil dropped the most in a week in New York as the euro tumbled against the dollar. Crude for October delivery dropped 2 percent to $87.24 a barrel on the New York Mercantile Exchange yesterday. Saudi Arabia holds one-fifth of the world’s proven oil reserves.
The Standard & Poor’s 500 Index and Dow Jones Industrial Average each lost 2.7 percent yesterday and the Stoxx Europe 600 Index fell 2.6 percent.
National Shipping Co. added 0.4 percent to 11.85 riyals after the Saudi operator of crude oil and chemical tankers said its National Chemical Carriers Ltd. Co. unit has received a new chemical tanker. The financial impact is expected to be felt starting in the third quarter.
Kingdom Holding Co. (KINGDOM), the company controlled by Saudi billionaire Prince Alwaleed bin Talal, rallied 0.7 percent to 7.45 riyals, after it said the group planning to buy Zain Kuwait’s stake in Zain Saudi Arabia expects to complete due diligence by the end of this month. The group intends to complete the proposed acquisition, Kingdom said.
Saudi Arabia’s stock exchange is the only Gulf Arab bourse open on Saturdays.
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