JEDDAH: The Saudi stock market yesterday posted the largest single-day gain for this year, the last day before the Eid Al-Fitr holiday break, after falling to a 14-month low on Saturday.

The Tadawul All-Share Index (TASI) surged 6.65 percent or 465.37 percent to close at 7,458.50. The index is still down 32.43 percent so far this year.

Out of 126 stocks traded, shares of five companies were in the red, while 121 companies registered increase in their stock prices.

The stock market turnover was over SR4.80 billion as all the sectors showed solid performances.

The banking index surged 6.86 percent as shares in Al-Rajhi Bank, Riyad Bank, Banque Saudi Fransi and Arab National Bank jumped over 9 percent each yesterday. Saudi Basic Industries Corp. (SABIC) shares edged higher by 5.25 percent to SR105.25.

Anaam International Holding Group Co. shares plunged 5.68 percent to SR36.50 yesterday.

Kasb Financial Group, meanwhile, expected that all leading companies listed on the market would make positive results during the third quarter of this year. It believed that the profit of SABIC for the first nine months of this year would reach SR21.1 billion compared to SR20.1 billion during the same period last year. The profit of Al-Rajhi Bank will jump from SR4.8 billion to SR5.1 billion and of Saudi Telecom co. from SR8.9 billion to SR10.8 billion during the same period, the company said in a statement.

Gulf Arab bank stocks rose yesterday, buoyed by merger rumors and after risk appetite returned as a $700 billion bailout deal for troubled US financial markets looked set to go ahead. Abu Dhabi Commercial Bank and National Bank of Abu Dhabi soared on consolidation talk, ending 6.91 percent and 4.29 percent higher respectively.

“There are some rumors in the market that the Abu Dhabi market will witness some mergers and acquisitions in the banking and real estate sectors,” said Ahmed Hamdy, senior relationship manager at Prime Emirates.

“ADCB is one of the banks likely to be involved,” he said. Executives at both ADCB and NBAD downplayed speculation on such a merger, amid growing pressure on Gulf banks to consolidate as competition from international players is expected to increase. The Abu Dhabi index ended 2.7 percent higher.

In Dubai, the benchmark index ended 2.47 percent up at 4,060 points, having fallen more than 30 percent since the beginning of the year.

The Kuwait index closed 2.03 percent higher at 12,824 points.

The Doha benchmark index ended 1.96 percent higher at 9,074 points.

BMG turnover up

The BMG Saudi Index reversed its previous negative performance, which extended over the last four trading sessions, surging in yesterday’s session by a strong 7 percent and recording the highest daily percentage increase in more than 21 months. The index reached a closing level of 402.59 points, and the total market turnover also appreciated by a strong 81 percent to SR2.3 billion ($600 million) compared to SR1.2 billion ($331 million), registered in Saturday’s trading session.

— With input from agencies