Late buying into petrochemical names lifted the market after Chinese ban decision filtered through
Saudi Arabian shares gained the most in a week, driven by petrochemical makers and banks, even as US and European stocks retreated.
The Tadawul All Share Index rose 0.7 percent to 6354.09, the highest since Oct 11, at the 3:30 pm close in Riyadh.
Saudi Basic Industries Corp, the world’s largest petrochemicals maker, known as Sabic and Banque Saudi Fransi led the advance, paring the 146 company gauge’s monthly loss to 0.6 percent.
Fuad Aghabi, investment director, Ajeej Capital, Riyadh, said: “Late buying into petrochemical names lifted the market in the last half hour after news filtered into the market on the Chinese decision not to impose any dumping fees on Saudi producers of methanol."
Sabic rose 2.1 percent to 97 riyals, the highest since May 18. Banque Saudi rose 2.4 percent, the most in a week, to 46.8 riyals.
Al Rajhi Bank increased 0.7 percent after chief executive officer Abdullah Al Rajhi said oct 28 that the kingdom’s biggest publicly traded lender plans to expand in Kuwait and Jordan.
Saudi International Petrochemical Co soared 4 percent, the most in almost five months, to 24.90 riyals. The petrochemical maker known as Sipchem said China’s Ministry of Trade won’t impose anti dumping tariffs on methanol exported by Saudi Arabian companies including a Sipchem unit known as International Methanol Co.
Most US stocks fell this week, with the Dow Jones Industrial Average sliding 0.1 percent, as investors awaited congressional elections and the Federal Reserve’s plans for economic stimulus.
European stocks had the first weekly decline in four weeks, with the Stoxx Europe 600 Index falling 0.3 percent.
Saudi Arabia’s index is the only Gulf Arab benchmark tracked by Bloomberg that trades on a Saturday.