JEDDAH: Petrochemical stocks led the Saudi bourse to a higher close yesterday. The stock market was boosted by surging oil prices which hit a six-month high on Friday amid hopes the world economy was beginning to recover after months of uncertainty.
Oil prices continued to surge on Friday, doubling in the past six months, largely on optimism of a strengthening economy. Benchmark crude for July delivery increased $1.23 to settle at $66.31 a barrel on the New York Mercantile Exchange. In London, Brent prices rose $1.13 to settle at $65.52 a barrel on the ICE Futures exchange.
The Tadawul All-Share Index (TASI) closed 2.49 percent or 144.11 points higher at 5,933.54 points. The index has surged 23.54 percent so far this year after dropping over 50 percent in 2008.
The cement sector was the only sector to close with a loss for the day, down 0.01 percent, while all other sectors enjoyed gains ranging from 1.22 percent (agriculture and food) to 4.96 percent (petrochemical industries). Saudi Cement and Southern Cement were in the red yesterday.
Overall market breadth was strongly positive, with 113 advancers and 9 decliners giving an AD ratio of 12.56, the Jeddah-based Financial Transaction House (FTH) said.
The stock market turnover exceeded SR8.5 billion yesterday.
Technically, by yesterday’s close, the index had reclaimed a level above the 20 days simple moving average and continues to be supported by a long-term average at 5,685 levels, the FTH said in its market report for the day.
“In the absence of news on the local level that can affect TASI’s direction, the market will continue to be guided by the dollar, oil prices, and global financial equity markets’ directions,” Faisal Alsayrafi, managing director and CEO of FTH, said.
In the banks & financial services sector, the only losers yesterday were Banque Saudi Fransi and the Saudi Investment bank as their shares dropped by 0.47 percent and 0.23 percent respectively.
Al-Rajhi Bank, the biggest listed lender, added 1.48 percent to close at SR68.5.
The market bellwether Saudi Basic Industries Corp. (SABIC) made hefty gains yesterday. SABIC stocks closed 5.8 percent higher at SR68.5. Shares in Alujain Corp. surged by 6.63 percent to SR20.90, Advanced Polypropylene Co. by 6.37 percent to SR25.90, and Rabigh Refining and Petrochemical Co. by 6.21 percent to SR30.80.
Meanwhile, the Tadawul announced yesterday that the bonus shares of Mohammad Al-Mojil Group Company were deposited into applicable investor’s portfolios on Saturday by granting one share for every four shares owned by the shareholders registered in the shareholders record at the end of May 26.
