Saudi shares rise on global stock rally

Jeddah: A surge in global stock markets and higher oil prices lifted Saudi shares, led by Saudi Basic Industries Corp (SABIC) and banking stocks.

World equity markets rallied sharply on Friday after a US government move to cap a deadly credit crisis that has triggered a sharp selloff.

Saudi Arabia's main index pared earlier gains, rising 2.76 per cent to 7,591 points, extending its gains into a second session after a four-day decline during which it lost more than 11 per cent. SABIC rose 3.51 per cent and Al Rajhi Bank gained 4.53 per cent.

"Global markets' rise has given a push to the Saudi stock market," says Abdullah Al Rashoud, chief executive of KSB Capital.