Saudi Shares Gain as Kingdom Buys Stake in China Online Retailer
Saudi Arabian shares climbed for the sixth trading day, the longest winning streak in more than six months, after Kingdom Holding Co. bought a stake in a Chinese online retailer and U.S. stocks rose last week.
Kingdom Holding advanced as much as 6.1 percent to 22.50 riyals, the highest level in five years. Saudi Basic Industries Corp., the world’s biggest petrochemicals maker, rose the most in four days. The benchmark Tadawul All Share Index added 0.4 percent to 7087.82 at the 3:30 p.m. close in Riyadh.
Kingdom Holding, the investment company controlled by billionaire Prince Alwaleed bin Talal, led a group of investors to purchase a stake valued at 1.5 billion riyals ($400 million) in 360buy Jingdong Inc., a Beijing-based online retailer. Prince Alwaleed and Kingdom Holding, who hold stakes in Twitter Inc., Apple Inc. and News Corp., have been investing in e-commerce and technology companies as demand for technology and Internet services increases.
U.S. stocks rose last week, sending the Standard & Poor’s 500 Index to its longest winning streak in two years, amid optimism over corporate dealmaking and better-than-estimated economic data. Among economic reports, claims for jobless benefits plunged in the latest week, showing U.S. employers have little need to trim staff as demand improves.
Kingdom Holding closed 2.4 percent higher at 21.7 riyals. Saudi Basic Industries climbed 0.5 percent to 94 riyals.
Saudi Arabia’s stock exchange is the only Persian gulf bourse that operates Saturdays.
To contact the reporter on this story: Deema Almashabi in Riyadh at firstname.lastname@example.org
To contact the editor responsible for this story: Shaji Mathew at email@example.com