Samba, ANB lead Tadawul rise for sixth day
Saudi Arabian stocks rose for a sixth day, led by Samba Financial Group and Arab National Bank (ANB), amid gains in oil prices.
Samba, the kingdom's second-largest bank, gained 3.3 per cent to SR54.5, the biggest increase since December 14. Arab National rose 3.3 per cent to SR44.5.
West Texas Intermediate crude has risen 13 per cent in the past month, reaching $83.52 a barrel at the New York Mercantile Exchange on Jan. 6, its highest since October 2008. Oil settled at $82.75 yesterday.
Petroleum accounts for 45 per cent of Saudi Arabia's gross domestic product, according to the US Central Intelligence Agency's World Factbook.
"WTI is nearly $83 a barrel," Paul Gamble, an economist at Jadwa Investment, said in a telephone interview. "People are starting the year with a bit more of a positive frame of mind, hoping the troubles in the corporate sector are behind us."
The Tadawul All Share Index rose one per cent to 6,321.73 in Riyadh yesterday, the biggest gain since December 14.
The six-day increase is the longest winning streak since September. The index has gained 23 per cent in the past year.
Anaam Holding gained 9.87 percent to SR61.25, followed by Saudi Fisheries, which gained 6.34 per cent to SR54.50.
Almarai Company gained 1.18 per cent to SR171.25.
The Banks and Financial Services Index rose by 1.26 per cent to 16136.06 points led by heavyweight Samba Financial Group.
The Tadawul index lost 3.7 per cent in December, its worst month since June.
"Saudi went into a bit of a drift in December and now investors are stepping in given stronger oil and the continued strong macro backdrop," said Ali Khan, head of cash-equity trading at Dubai-based Arqaam Capital Ltd, last week.
Saudi Arabia's Tadawul All Share Index climbed 0.4 per cent to 6,260.9 on Wednesday, added for a fifth day.
Tadawul is the only market which trades on Saturdays. (With inputs from agencies)
Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.
Follow Emirates 24|7 on Google News.