S Arabian shares climb most in two months on Fed stimulus plan, oil
Monday, 8 November 2010
RIYADH, Nov 7 (Bloomberg): Saudi Arabian shares rose the most in two months after US and European markets advanced and oil prices rallied as the Federal Reserve announced another round of bond purchases to boost the world's biggest economy.
Saudi Basic Industries Corp, the world's largest petrochemicals maker, known as Sabic, advanced to the highest level since May 5 after oil rose by $5.42 a barrel in the past week.National Industrialisation Co surged 3.1 per cent.
The Tadawul All Share Index gained 1.9 per cent to 6,461.74 at the 3:30 pm close in Riyadh, the biggest rise since Sept 4. The measure has rallied 12 per cent since its low this year in May.
Stocks advanced around the world this week after the Fed announced plans to buy an additional $600 billion of Treasuries in a second round of quantitative easing. The central bank also kept its pledge to hold interest rates low for an "extended period" after Chairman Ben S Bernanke said the programme could be modified in some way.
"The market is taking its cue from the highly anticipated events of last week in the US," said Asim Bukhtiar, equity analyst at Riyad Capital in Riyadh. "The QE2 announcement is expected to lift asset prices and risk tolerance."
The Standard & Poor's 500 Index ended the week with a gain of 3.6 per cent, its fifth straight weekly advance and the longest rally since April. The Stoxx Europe 600 Index rose 2.3 per cent this week, the biggest gain in two months. The 21-country benchmark MSCI Emerging Markets Index surged 4.5 per cent this week.
"Oil has also made a large up move over the weekend, this is helping investors place larger bets on petrochemicals," said Amro Halwani, a trader at Shuaa Capital PSC in Saudi Arabia.
Sabic soared 6.1 per cent to 104.25 riyals, the largest gain in five months.
National Industrialisation, the petrochemical maker known as Tasnee, rose 3.1 per cent to 32.8 riyals, the highest price since Oct 10. Yanbu National Petrochemicals surged 4.2 per cent to a six-month high of 44.7 riyals.
Saudi Industrial Investment Group soared 4.3 per cent to 19.60 riyals.
Crude oil climbed to a two-year high after US payrolls rose more than forecast in October, bolstering confidence in the economy, while the dollar headed for a weekly decline against most major currencies.
Crude rallied 6.7 per cent this week to $86.85 a barrel on the New York Mercantile Exchange, the highest settlement price since Oct 8, 2008. Saudi Arabia holds one-fifth of the world's proven oil reserves.
Al Rajhi Bank, the kingdom's largest publicly traded lender, rose 1.6 percent to 78.75 riyals, the biggest gain in almost three months.
Saudi Basic Industries Corp, the world's largest petrochemicals maker, known as Sabic, advanced to the highest level since May 5 after oil rose by $5.42 a barrel in the past week.National Industrialisation Co surged 3.1 per cent.
The Tadawul All Share Index gained 1.9 per cent to 6,461.74 at the 3:30 pm close in Riyadh, the biggest rise since Sept 4. The measure has rallied 12 per cent since its low this year in May.
Stocks advanced around the world this week after the Fed announced plans to buy an additional $600 billion of Treasuries in a second round of quantitative easing. The central bank also kept its pledge to hold interest rates low for an "extended period" after Chairman Ben S Bernanke said the programme could be modified in some way.
"The market is taking its cue from the highly anticipated events of last week in the US," said Asim Bukhtiar, equity analyst at Riyad Capital in Riyadh. "The QE2 announcement is expected to lift asset prices and risk tolerance."
The Standard & Poor's 500 Index ended the week with a gain of 3.6 per cent, its fifth straight weekly advance and the longest rally since April. The Stoxx Europe 600 Index rose 2.3 per cent this week, the biggest gain in two months. The 21-country benchmark MSCI Emerging Markets Index surged 4.5 per cent this week.
"Oil has also made a large up move over the weekend, this is helping investors place larger bets on petrochemicals," said Amro Halwani, a trader at Shuaa Capital PSC in Saudi Arabia.
Sabic soared 6.1 per cent to 104.25 riyals, the largest gain in five months.
National Industrialisation, the petrochemical maker known as Tasnee, rose 3.1 per cent to 32.8 riyals, the highest price since Oct 10. Yanbu National Petrochemicals surged 4.2 per cent to a six-month high of 44.7 riyals.
Saudi Industrial Investment Group soared 4.3 per cent to 19.60 riyals.
Crude oil climbed to a two-year high after US payrolls rose more than forecast in October, bolstering confidence in the economy, while the dollar headed for a weekly decline against most major currencies.
Crude rallied 6.7 per cent this week to $86.85 a barrel on the New York Mercantile Exchange, the highest settlement price since Oct 8, 2008. Saudi Arabia holds one-fifth of the world's proven oil reserves.
Al Rajhi Bank, the kingdom's largest publicly traded lender, rose 1.6 percent to 78.75 riyals, the biggest gain in almost three months.