Saudi Share Rally Led by National Medical After U.S. Gain
Saudi Arabian (SASEIDX) shares advanced for the second day, led by National Medical Care Co. and Saudi Basic Industries (SABIC) Corp., after the U.S.’s benchmark index climbed to a near-record high this week.
National Medical Care has increased almost five-fold from its book value price of 27 riyals a share since it started trading on March 13. Saudi Basic Industries, the world’s largest petrochemical maker, advanced to the highest level since Feb. 16.
The Tadawul All Share Index gained 0.5 percent to 7057.10, the highest since March 9, at 11:36 a.m. in Riyadh. The Arab world’s biggest stock exchange added 3.7 percent this year, compared with the Dubai Financial Market’s gain of 18 percent.
“The attention is now on the newcomer to the market National Medical Care, which was listed last Wednesday,” said Mohammed Al-Omran, a financial analyst and president of the Gulf Center for Financial Consultancy in Riyadh. “The book building valued the stock at 27 riyals, and it closed at 122 riyals a share on the first day. The market is speculative driven by National Medical Care.”
U.S. stocks climbed for the week, sending the Standard & Poor’s 500 Index within five points of a record high, as better- than-estimated retail sales and jobless claims data boosted optimism in the world’s largest economy. The S&P 500 (SPX) advanced 0.6 percent to 1,560.70, for its third straight weekly gain. The Dow climbed for a fourth week, adding 117.04 points, or 0.8 percent, to 14,514.11.
National Medical Care climbed 4.9 percent to 126 riyals, while Saudi Basic Industries advanced 0.5 percent to 94 riyals.
Saudi Arabia’s stock exchange is the only Persian Gulf bourse operating on Saturdays.
To contact the reporter on this story: Glen Carey in Riyadh at firstname.lastname@example.org
To contact the editor responsible for this story: Andrew J. Barden at email@example.com