JEDDAH: Banking and petrochemical stocks led Saudi shares to post the strongest one-day gain since May 9 as the index broke the 6,000-point barrier.
The Tadawul All-Share Index (TASI) ended 2.59 percent or 153.71 points higher at 6,094.91 points. The index shed 1.8 percent last week but is still higher by 26.90 percent so far this year.
It was a positive day across the board, with almost all sectors closing with gains. Overall market breadth was strongly positive, with 114 advancers and 10 decliners giving an AD ratio of 11.4.
The banking and financial stocks index posted the strongest gains, with Arab National Bank (ANB) leading the sector’s gainers by closing 7.44 percent higher at SR46.20. The banking index surged 4.17 percent to 16,466.09 points. Banque Saudi Fransi shares jumped by 7.11 percent to SR45.20, Samba Financial Group by 5.65 percent to SR50.50, Bank AlJazira by 4.28 percent to SR23.15, Saudi Hollandi Bank by 4.21 percent to SR39.60 and Al-Rajhi Bank by 4.03 percent to SR71.
Shares in Saudi Basic Industries Corp. (SABIC) ended 1.38 percent up at SR73.5, its highest since Oct. 29, 2008.
“The only concerns today are the level of liquidity that are modest at SR7.2 billion. We are as of now around 45 points away from the intraday high achieved on May 24, and about six points away from the highest close. In the coming days we would like to see levels above 6,140 to be maintained once reached,” the Jeddah-based Financial Transaction House (FTH) said in its daily report about the market.
Aldrees Petroleum and Transport Services Co. was the top gainer yesterday as its shares surged 10 percent to SR31.90.
Halwani Bros. shares dropped 5.16 percent to close at SR38.60 yesterday.
Meanwhile, Chairman of the Saudi Capital Market Authority (CMA) Abdul Rahman Al-Tuwaijri urged foreign investors to invest in the Saudi financial market because of its high liquidity and financial stability in spite of the global financial crisis.
“The liquidity in the robust Saudi financial market is plentiful,” Al-Tuwaijri said while addressing a function organized by EFG-Hermes on the Saudi Financial Markets Day at the London Stock Exchange (LSE) on Friday, the Saudi Press Agency reported.
Al-Tuwaijri said the meeting is a great opportunity for foreign investors and companies to examine and compare with other markets the special investment strategy features of the Saudi market for 2009.
In a statement to the SPA, Yasser El-Mallawany, CEO of EFG-Hermes, said several foreign investors look forward to invest in the Saudi market.
“The fluctuations in the Saudi stock exchange prices and economic impact to which the international bourses and markets are exposed to in general do not lessen the desire of the foreign investors to enter the Saudi market and invest in it, thanks to the high level of confidence in the Saudi economy,” El-Mallawany said.
While addressing the function Chris Gibson-Smith, chairman LSE, said the meeting is a proof to the depth and width of the modern Saudi economy, which has achieved rapid growth over the past 10 years.