Top ten market cap companies including market leader SABIC (Saudi Basic Industries Corp.) and Al-Rajhi Bank ended the day in green. Only Kingdom Holding could not manage for a gain, down by 0.46 percent.

"Tadawul all share index stayed undervalued for the last year, as company's earnings increase while shares prices remain at the same levels, as investors were affected 'psychologically' by global and regional, economic and political turmoil," Ragheb Alothmani, senior officer, asset management at Bakheet Investment Group, said.

He pointed out that at the beginning of 2012, investors' sentiment changed and they have started to adapt to new global economic and political environment, focusing more on the strong data coming from the Saudi economy, which in turn has caused them to put a considerable amount of excess liquidity in the stock market.

Tadawul witnessed buying interest as prices of Saudi stocks have been surging up with high turnover; total value of traded shares rose to SR11.9 billion compared to SR10.3 billion on previous trading day, a growth of 15.2 percent. This daily equity turnover is the highest since July 29, 2008. Approximately 504.3 million shares changed hands, a 20.9 percent increase over its previous daily volume. More than 229,300 transactions took place during the day, an increase of 17 percent.

The Media & Publishing and Insurance sectors were major gainers among sectoral indices, which marginally increased by 4.88 percent and 2.6 percent respectively. Hotel & Tourism and Energy sectors were the worst performing sectors, down by 0.53 percent and 0.26 percent respectively.

The market breadth was positive with advance-decline ratio of 5.4:1. Allianz Saudi Fransi Cooperative Insurance Co. and Saudi Integrated Telecom made the biggest jumps of 10 percent among all Saudi equities. On the other hand, Mohammad Al-Mojil Group became the biggest loser of the day, down 9.91 percent to close at 19.10 points.

The market leader SABIC continued to pump more liquidity into the market by contributing SR708.8 million which is approximately 6 percent of Tadawul turnover. Emaar the Economic City with 48.4 million shares became the most active stock on volume basis.