JEDDAH: The Saudi bourse soared to its highest close in more than six months yesterday after petrochemical stocks rose strongly due to surging oil prices. The Tadawul All-Share Index (TASI) broke the 6,000-point barrier to end 3.75 percent or 217.55 points higher at 6,019.69, its highest close since Nov. 5.
Oil prices appeared headed for the strongest week so far this year. Benchmark crude for June delivery rose $1.92 to settle at $58.63 a barrel, its top closing price this year on the New York Mercantile Exchange. The Petrochemical Industries Index increased 8.46 percent to 4,392.24 points.
Saudi Basic Industries Corp. (SABIC) shares jumped 9.62 percent to SR65.50 yesterday after it was announced that it has signed a Memorandum of Understanding (MoU) with the Saudi International Petrochemical Co. (Sipchem) for setting up new projects in Jubail. Sipchem shares also gained 9.84 percent to SR20.65. Saudi Kayan Petrochemical Co. shares increased by 9.83 percent to SR13.40 and Yanbu National Petrochemical Co. by 9.23 percent to SR28.40. The stock market turnover was over SR19.49 billion yesterday compared to SR43.96 billion for the whole of last week.
“Today’s (Saturday’s) close came at the highest level for the day as the index continues to confidently break above strong resistance levels including the 6,000 level. However, on the short-term horizon we continue to keep an eye on the 5 days exponential moving average as any close below it (5,820) could signal weakness ahead,” the Jeddah-based Financial Transaction House (FTH) said in its daily commentary yesterday.
“A powerful session with broad gains and with a new level of liquidity not seen since July 2008 is a definite reflection of investors’ optimism supported by global financial market’s outlook for improvements,” Faisal Alsayrafi, managing director and CEO of FTH, said.
SABB Takaful shares plunged 5.97 percent to SR126 yesterday.
Almarai Company and Hail Agriculture Development Company (HADCO) have agreed on a share-for-share exchange ratio of one new Almarai share for every five HADCO shares, and the payment to the shareholders of HADCO of SR0.50 for each share.
The completion of the transaction is subject to completing satisfactory due diligence and after obtaining the necessary shareholder and regulatory approvals, according to information available on Tadawul website.
Almarai shares edged higher by 2.02 percent to close at SR151, while HADCO was the top gainer as its shares jumped 10 percent to SR28.60 yesterday.
Saudi Cable Co. (SCC) shares surged 8.67 percent to SR26.30 yesterday after Waheeb A. Linjawi, SCC president and managing director, announced that during the past few days the company has gotten supply contracts amounting to SR250 million for different types of cables from a number of contractors from within the Kingdom.
Waheeb added that the flow of big contracts to the company further strengthens the contractors’ confidence in the quality of its products and affirms the company’s continued outstanding performance to the benefit of its shareholders and investors.
