Saudi shares advance to 21-month high

Riyadh: Saudi Arabian shares erased earlier losses, sending the benchmark index to its highest close in 21 months, following approval by Greece's Cabinet for deeper budget cuts required for a second aid package.

Dar Al Arkan Real Estate Development Co. reached its highest price since May, while Jabal Omar Development Co. jumped the most this month.

The Tadawul All Share Index rose 0.1 per cent to 6,804.03 in Riyadh, its highest level since May 2010. The 151-member measure erased earlier losses of as much as 0.3 per cent, extending gains in the past three days to 1 per cent.

"Investors are watching headlines out of Greece on securing bailout funds," said Asim Bukhtiar, head of research at Riyad Capital. "We may continue to see some see-saw on the Tadawul until a concrete announcement."

Greek Prime Minister Lucas Papademos obtained approval from his Cabinet for deeper budget cuts needed to secure a second package of international aid, clearing the latest hurdle in his race to prevent financial collapse.

Dar Al Arkan gained 4.6 per cent to 9.05 riyals. Jabal Omar advanced 3.3 per cent, the biggest increase since January 31, to 14.05 riyals.

Saudi Kayan Petrochemical Co. strengthened 0.3 per cent to 16.25 riyals, its highest closing since February 5. The unit of Saudi Basic Industries Corp. said output has resumed gradually at plants producing olefins and high-density polyethylene after the completion of unscheduled maintenance due to a power failure.