Saudi stocks get bullish on EU crisis hopes
Saudi Arabian stocks advanced the most in almost four weeks on speculation governments and central banks will take steps to contain the euro-region debt crisis and stoke economic growth.
Bank stocks gained, led by Bank Albilad, which climbed the most in two weeks. Al Rajhi Bank, the kingdomï's biggest lender by market value, added 0.4 per cent. Saudi Basic Industries Corp., the world’s largest petrochemicals maker by market value, rose 4.1pc, the most since April 17.
The Tadawul All Share Index rose 1.5pc to 6,767.81 in Riyadh, the biggest increase since July 3. The measure has advanced 5.5pc this year.
European and U.S. equities gained on optimism Europe’s policy makers will take further action. The Standard & Poor’s 500 Index increased 1.7pc this week, the most in four weeks.
European Central Bank President Mario Draghi is said to be planning talks in the coming days with Bundesbank President Jens Weidmann on stimulus measures including bond purchases. ECB and Federal Reserve policy makers are scheduled to gather next week in separate meetings.
German Chancellor Angela Merkel and French President Francois Hollande pledged to do everything to protect the single currency. The two largest euro-area economies are "bound by the deepest dutyï" to keep the 17-nation currency bloc intact, Merkel and Hollande said in a joint statement.
Bank Albilad rose 1.7pc, the most since July 15, to 29.50 riyals. Al Rajhi added 0.4pc to 72 riyals, after earlier gaining as much as 1.4pc.
Oil for September delivery rose 0.8pc to $90.13 a barrel by the close on the New York Mercantile Exchange yesterday, a fourth straight increase.
All 14 members of the Tadawul All Share Petrochemical Industries Index gained. Sabic jumped as much as 4.4pc and closed up 4.1pc at 89.75 riyals.