Riyadh: Shares in Saudi Arabia, the Arab world’s biggest stock market, climbed to a two-month high after oil prices rose and US employment climbed more than economists anticipated.
Saudi Basic Industries Corp, the world’s largest petrochemical maker known as Sabic, advanced to the highest level since July 3. Yanbu National Petrochemicals Co, a Sabic unit, reached the highest value since May 22. Al Rajhi Bank, the kingdom’s biggest by market value, rose the most since July 3.
The Tadawul All Share Index gained 0.9 per cent to 6,953.77, the highest since June 2, at 11.48am in Riyadh. The measure has risen 8.4 per cent this year. US stocks rose for a fourth week, giving the Dow Jones Industrial Average the longest rally since October, after the Labour Department said employers added 163,000 workers last month, exceeding the 100,000 median estimate of economists surveyed by Bloomberg News. Oil surged 4.9 per cent, 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 emailed questions. “Petrochemicals and banks should rise and drive the market today.”
Sabic gained 1.1 per cent to 90.75 riyals, while Yanbu National advanced as much as 4.3 per cent before trading 2.8 per cent higher at 47.50 riyals. Al Rajhi increased 1.7 per cent to 74 riyals.