Riyadh: Saudi Arabian shares rose the most in a month, after US and European markets advanced and oil prices rallied on a pledge by Fed Chairman Ben S. Bernanke to maintain the US economic recovery.
Saudi Basic Industries, the world's largest petrochemicals maker, known as Sabic, advanced to the highest since August 23 after oil prices rose by $1.7 a barrel in the past week.
The Tadawul All Share Index gauge rose as much as 1.2 per cent, the most since July 24, to 6,071.53, at 11.41am in Riyadh. The gauge has lost 3.6 per cent since the start of August.
"The market is reacting positively to a higher close for oil over the weekend," said Anas Kassem, an investment analyst at Ajeej Capital in Riyadh, "in addition to Bernanke's speech on Friday which helped western markets bounce back at the end of a difficult week."
US, European and emerging-market stocks rose yesterday as US Federal Reserve Chairman Bernanke pledged to safeguard the recovery of the world's biggest economy. The Dow Jones Industrial Average surged 1.7 per cent, the Stoxx 600 gained 0.6 percent and the MSCI Emerging Markets Index advanced 0.4 percent.
Crude oil surged 2.5 per cent, the most since August 2, settling at $75.17 (Dh275.87) a barrel on the New York Mercantile Exchange. Futures gained 2.3 per cent this week.
