Saudi Arabian shares advanced on the week’s first day of trading, led by Saudi Basic Industries and Al Ahlia Cooperative Insurance, after US stocks and oil had their first weekly gains in a month.
Al Ahlia Cooperative surged 9.7 percent after saying it plans to raise $53.3 million in a rights offering to fund expansion. Saudi Basic, the world’s largest chemicals maker, climbed 1.2 percent.
Saudi Industrial Investment Group, a petrochemicals maker, gained 2.9 percent and Yanbu National Petrochemical Co added 7.1 percent.
The Tadawul All Share Index rose 0.7 percent to 6,269.05 in Riyadh, bringing its gain this year to 2.1 percent.
The gauge added 27 percent last year after slumping more than 50 percent in 2008 as the price of oil, the country’s biggest export earner, declined.
US stocks climbed this week, completing the Dow Jones Industrial Average’s first rally since the week ended Jan 8. Oil rose 4 percent, its first weekly gain over the same period.
Crude oil for March delivery fell $1.15, or 1.5 percent, to $74.13 a barrel yesterday on the New York Mercantile Exchange.
Saudi Basic, also known as Sabic, added 1 riyal to 86.25 riyals. Saudi Industrial climbed 0.6 riyal to 21.15 riyals and Yanbu National, a Sabic unit, rose 2.3 riyals to 34.9 riyals.
Al Ahlia advanced 7.5 riyals to 84.75 riyals after the announcement it wanted to expand its share capital.
Al Rajhi Bank, the largest lender in Saudi Arabia by market value, rose 0.7 percent, or half a riyal, to 74.5 riyals.For all the latest market news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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