Saudi shares surge as other Gulf markets slide
Tuesday, 25 November 2008
KUWAIT CITY, Nov 24: The Saudi stock market surged Monday but other markets in the Gulf fell, led by Dubai despite government assurances that the booming emirate was capable of dealing with its huge foreign debt, according to Internet.
The Saudi Tadawul All-Shares Index (TASI) gained 6.20 per cent to close at 4,529.19 points, following two days of massive losses, on reports that some funds run by government institutions began buying shares.
The market also reacted to a decision Sunday to cut the repo rate by 1.0 percentage point to 3.0 per cent and to reduce mandatory reserves that banks must hold from 10 per cent to 7.0 per cent, thus freeing extra cash for lending.
The TASI, which remains down 59 per cent on the year, was solidly spurred by the leading banking and petrochemicals sectors, which rose 7.10 per cent and 7.60 per cent, respectively.
The Saudi Tadawul All-Shares Index (TASI) gained 6.20 per cent to close at 4,529.19 points, following two days of massive losses, on reports that some funds run by government institutions began buying shares.
The market also reacted to a decision Sunday to cut the repo rate by 1.0 percentage point to 3.0 per cent and to reduce mandatory reserves that banks must hold from 10 per cent to 7.0 per cent, thus freeing extra cash for lending.
The TASI, which remains down 59 per cent on the year, was solidly spurred by the leading banking and petrochemicals sectors, which rose 7.10 per cent and 7.60 per cent, respectively.