RIYADH, 6 August 2004 — Optimism over record oil prices and strong half-year results helped Saudi stocks extend a nearly two-month rally in the week to Thursday.
The all-share index, which had fallen to about 6,150 points in mid-week, closed the week at 6,195.56 points, up 0.2 percent from last week’s 6,181.18. The index of the largest Arab bourse, climbing for the seventh consecutive week, is up 39.6 percent this year after rising 76 percent in 2003. “We expect the market to continue trading within a limited band while waiting for any positive factors,” Bakheet Financial Advisors said.
Strong oil revenues have been a boon for the economy of the world’s biggest crude exporter, helping corporate earnings and boosting investor liquidity.
Yesterday NYMEX crude futures jumped to a new record in the market’s 21-year history on concerns about Russian oil major Yukos and its ability to export.
“All eyes are on the recent high level of oil prices, which if sustained will give positive support,” Bakheet said.
Turnover climbed to SR39.3 billion ($10.5 billion) from SR33.96 billion a week earlier.
Saudi Electricity Co., the most active share with 16.2 percent of turnover, added 5.6 percent to SR145.50. Last month, Saudi Arabia’s third largest listed company, posted a swing to first-half net profit of SR56.7 million, from losses of SR334.9 million a year earlier.
Eastern Agricultural Development Co., among several small-caps that climbed in speculative buying, gained 16.2 percent to SR122.
Samba Financial Group, the week’s biggest blue-chip loser, gave up some of its recent gains and closed 2.3 percent lower at SR518.
Advancers outnumbered decliners 39 to 32, and one share was unchanged.
