Oil prices leave Saudi shares on a high
Shares in Saudi Arabia (SASEIDX), the Arab world's biggest stock market, climbed to a two-month high after oil prices rose and U.S. employment climbed more than economists anticipated.
Saudi Basic Industries Corp. (SABIC), the world's largest petrochemical maker known as Sabic, advanced to the highest level since July 3. Yanbu National Petrochemicals Co. (YANSAB), a Sabic unit, reached the highest value since May 23. Al Rajhi Bank, the kingdom's biggest by market value, rose the most in a month.
The Tadawul All Share Index gained 0.9 per cent to 6,951.66, the highest since May 30, at the 3:30pm close in Riyadh. The measure has risen 8.3pc this year. US stocks capped four weeks of gains yesterday, giving the Dow Jones Industrial Average the longest rally since October, after the Labour Department said employers added 163,000 workers in July, exceeding the 100,000 median estimate of economists. Oil surged 4.9pc, the most since June 29.
"Given the positive sentiment in global markets and resultant lift in crude prices, we expect the Saudi market to react similarly," Asim Bukhtiar, head of research at Riyad Capital, said in response to e-mailed questions.
Sabic gained 1.1pc to 90.75 riyals, while Yanbu National advanced 2.8pc to 47.50 riyals. Al Rajhi increased 1.4pc to 73.75 riyals.