Mar 26 2012
|more articles from|
Banks fuel Saudi stocks to highest close since 2008
The main benchmark Tadawul All Share Index rose 1.08 percent to finish at 7,758.66 points, its highest close since September 2008 and third straight gain.
"The index is approaching a resistance between the 7,800 and 8,000 points range," said Mateb Al Ghanim, portfolio manager at Amlakuna Investment Group. Strong support is seen between 6,900 and 7,200 points, with buying opportunities in banking stocks supporting gains, he added.
Heavyweight Al Rajhi Bank gained 2.2 percent, Samba Financial Group climbed 3.4 percent and Banque Saudi Fransi rose 2.2 percent.
"Banks have strong fundamentals and when the numbers are released for the first quarter, they will reiterate recent gains," said Ahmed Raza Khan, head of research, asset management at Mefic Capital .
Bank stocks could gain a further 10 to 15 percent, he added. Saudi Arabia's Etihad Atheeb Telecom jumps 9.9 percent, extending gains from a day earlier when it resumed trade following a 10-month suspension.
The fixed line operator's shares were suspended in May 24 after its accumulated losses reached 95 percent of its capital.
Saudi market rules call for a suspension if losses exceed 75 percent.
The company received approval to resume trading after it announced plans for a capital increase. This began Saturday and is open until March 31, according to market sources.
The company will raise its capital from SR400 million ($106.66 million) to SR1,575 million by selling 117.5 million shares at a price of SR10.00 per share.
Heavy speculative buying in small-caps continued, with Zain Saudi and Alinma Bank each rising 0.9 percent. Dar Al Arkan climbs 3.8 percent and Emaar Economic City advances 1.9 percent.
Meanwhile, Dubai's bourse ended higher for a third session despite late selling in small-caps, while Qatar's index hit a three-week closing high as an upbeat global backdrop supported Gulf sentiment.
In Dubai, developer Deyaar jumps 12.3 percent, Dubai Islamic Bank rises 0.9 percent and telecoms operator du climbed 1.3 percent.
National Central Cooling and mortgage lender Tamweel give back earlier gains, fell 7.2 and 1.6 percent respectively.
© Copyright Zawya. All Rights Reserved.