Tadawul surges 3.2% on earning reports

Petrochemical and banking sector led Saudi shares to their highest close in more than three months after the announcement of better-than-expected earnings that included largest-listed lender Al Rajhi Bank.

The all-share index, Tadawul, closed 3.2 per cent higher at 5,200 points, its highest since January 7.

Rajhi closed 6.28 per cent higher and leads gainers among blue chips. Largest-listed Saudi Basic Industries Corp ended 4.61 per cent higher after its affiliate Saudi Fertilisers Co posted a 27.4 per cent fall in first-quarter net profit, which was better than analysts' forecasts. Safco shares added 1.25 per cent.

Al Rajhi Bank advanced 6.7 per cent to SR59.5. The bank reported that net income in the first quarter increased to SR1.73 billion, or SR1.15 a share, from SR1.60bn, or SR1.07, a year earlier. Samba gained five per cent to SR51, the highest level since January 13.

Almarai gained 1.3 per cent to SR151.75 after reporting that first-quarter net income advanced to SR197.4 million from SR1.62m in the same period of last year.

"Share prices have picked up in recent weeks after hitting a 64-month low in the first half of March," Jadwa Investment Co. said in its April Monthly Bulletin.

"This is largely the result of improvements in global markets and rising oil prices, as investors have responded favorably to various government stimulus packages and signs that the pace of economic decline may be slowing."

The Dow Jones Stoxx 600 Index has rebounded 19 per cent since reaching a 12-year low on March 9 as banks from Barclays to Citigroup signalled they had a positive start to the year and Treasury Secretary Timothy Geithner unveiled plans to finance the purchase of as much as $1 trillion in lenders' toxic assets.

Crude oil increased by more than $2 a barrel on April 9, signalling that some investors expect economies to stabilize, bolstering energy demand. Crude oil for May delivery rose $2.86 to settle at $52.24 on the New York Mercantile Exchange. Prices have increased 17 percent this year.

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