JEDDAH: After declining 2.33 percent last week, the Saudi stock market started the new week Saturday with a bang. The Tadawul All-Share Index (TASI) closed 1.87 percent higher at 6,855.82, led by petrochemical stocks, which rallied after a rise in oil prices and stronger outlook for economic recovery.
The petrochemical index gained 4.14 percent to 6,563.12 points.
Shares in heavyweight Saudi Basic Industries Corp. (SABIC) surged 5.25 percent to SR105.25.
The only sector to see losses on Saturday was the Insurance, which saw a loss of 0.46 percent. Otherwise, all other sectors saw gains which ranged from 0.07 percent in the Telecom & IT sector, to a gain of 4.14 percent in the Petrochemical Industries sector. Overall market breadth was positive, with 101 advancing companies and 25 declining companies recording an AD ratio of 4.04, the Financial Transaction House (FTH) said in its daily market commentary.
"The sector is drawing support from a surge in oil prices to trade above $85 a barrel amid signals of a stronger economic recovery in the US boosted the outlook for energy demand," said Mohammed Ishaq Ali, a fund manager at Al-Rajhi Capital.
Rabigh Refining and Petrochemical Co. (PetroRabigh) gained 4.06 percent to SR35.90 and Saudi Kayan Petrochemical Company increased 5.88 percent to SR22.50.
Following last week's sudden drop, Saturday's market managed to recuperate all of last Tuesday's losses. However the indicators still show weakness, with the 5 and 20-day moving averages still negatively crossed, yet it is comforting to see that the lower Bollinger band did prove to be a sufficient support level, and that the market has managed to break above both averages, with a relatively strong liquidity of SR 5.22 billion, the FTH report said.
© Arab News 2010
