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Sun 15 Jul 2012 10:15 AM

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Global, Saudi market rises to aid Gulf indices

Global stocks surged in a relief rally on Friday after Chinese GDP data, in line with expectations

Global, Saudi market rises to aid Gulf indices
Gulf Arab markets are likely to benefit from advances on global markets on Friday.

Gulf Arab markets are likely to benefit from advances on global markets on Friday and on the Saudi index on the previous day, with second-quarter results seen impacting individual stocks.

Global stocks surged in a relief rally on Friday after Chinese GDP data, in line with expectations and slightly above the government's estimate, eased fears of a potential hard landing for the world's number two economy and a further blow to growth worldwide.

The news also inspired a rise in oil prices, with Brent August crude rising US$1.33 to settle at US$102.40 a barrel, reaching US$103.44 intraday and moving above its 50-day moving average for the first time since April.

The Saudi index ended Saturday up 0.6 percent, helped by Dar al-Arkan which repaid a US$1bn Islamic bond, or sukuk, on time. The real estate firm jumped 9.8 percent on the news.

Saudi Cement will be in focus after reporting a 36-percent rise in second-quarter net profit on the back of growing domestic demand for cement and clinker.

The performance of Saudi Kayan Petrochemical Co will also be watched after it posted a second-quarter net loss of SAR328.3m (US$87.5m) before markets opened.

The loss, increased from a loss of SAR16m in the same period a year ago, was "due to the decline in average selling prices of the products and [an] increase in cost of sales," Saudi Kayan said in a bourse statement.

However, it added the periods were not directly comparable because Saudi Kayan's commercial operations only began on October 1 2011.

Saudi Kayan has dropped 19.5 percent year-to-date, compared with the main Saudi index which has risen 4.4 percent.

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