Saudi Arabia’s stocks rose, heading toward their highest level in more than three months, as oil gained after Federal Reserve Chairman Ben S. Bernanke said he wouldn’t rule out more stimulus to support the U.S. economy.
Saudi Basic Industries Corp. (SABIC), which trades as Sabic, advanced the most in a week. Al-Rajhi Bank (RJHI), the kingdom’s biggest lender by market value, climbed the most since Aug. 27. Dar Al Arkan Real Estate Development Co. (ALARKAN) increased to its highest price since July 8.
The Tadawul All Share Index gained 0.2 percent to 7,153.5 at 1:12 p.m. in Riyadh, heading for its highest level since May 13. The biggest stock market in the Middle East and North Africa has rallied 12 percent this year.
“The optimism regarding new monetary stimulus initiatives has increased significantly,” Jarmo Kotilaine, the chief economist at National Commercial Bank in Jeddah, said by phone. “Markets are in anticipation mode.”
Oil completed its biggest monthly gain since October as Bernanke said that the Fed will “provide additional policy accommodation as needed to promote a stronger economic recovery.” The Fed chairman spoke at the Kansas City Fed’s annual economic-policy symposium in Jackson Hole, Wyoming. The Federal Open Market Committee’s next meeting comes in two weeks.
Oil for October delivery increased $1.85 to $96.47 a barrel on the New York Mercantile Exchange yesterday. Prices increased 0.3 percent last week and 9.6 percent in August.
Sabic, the world’s largest petrochemical maker, gained 0.5 percent to 92.50 riyals and Al-Rajhi added 0.7 percent to 74.25 riyals. Dar Al Arkan advanced 1.5 percent to 10.10 riyals.
Saudi Arabia (SASEIDX)’s stock exchange is the only Persian Gulf bourse that opens on Saturday.
Source: Bloomberg
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