Saudi shares at a three-year high

Riyadh: Saudi Arabia's stock index rose to the highest level in more than three years on investor bets the Arab world's biggest stock market may this year open up to foreign investors and as oil traded near a nine-month high.

Saudi Basic Industries Corp., the world's biggest petrochemicals maker, gained to the highest since August. Al Rajhi Bank, Saudi Arabia's largest publicly traded lender by market value, jumped 2 per cent. The Tadawul All Share Index climbed 0.7 per cent to 7,013.65, the highest intra-day level since October 2008, bringing its increase this week to 3 per cent.

"Some investors in regional markets are putting money into Saudi Arabia with the view that the bourse may soon open up to direct foreign ownership," Asim Bukhtiar, an equity analyst at Riyad Capital, said. "Volumes have been going up in Saudi Arabia but are generally muted in regional bourses."

Saudi Arabia's Capital Market Authority is in discussions with international banks to open the country's stock exchange to foreign investors early this year, three bankers familiar with the matter said in October. Foreign, non-Gulf investors currently can't directly invest in Saudi shares. The kingdom hasn't set a timeline for opening its market to foreigners, stock exchange Chief Executive Officer Abdullah Al Suw-eilmy said in December.

Swap agreement

The stock exchange will directly link swap agreement portfolios to primary beneficiaries in coordination with the market regulator and brokerages, a statement on the Saudi bourse said yesterday. This will replace the previous process of combining beneficiaries under the name of authorised persons.

In a growing sign of openness, the market regulator said in January it would allow overseas companies to list securities on the bourse.