Bloomberg News

Saudi Shares Rise Most in Three Weeks on Earnings, Europe Bets

October 05, 2011

Oct. 5 (Bloomberg) -- Saudi Arabian shares rose the most in almost three weeks on bets third-quarter earnings will beat estimates and amid speculation European policy makers are examining measures to shield banks from the debt crisis.

Saudi Arabian Fertilizer Co., a unit of Saudi Basic Industries Corp., rose 3.2 percent. Jarir Marketing Co. rallied to the highest since July as profit at the kingdom’s biggest retailer of books and personal electronics beat expectations. The Tadawul All Share Index gained 0.6 percent, the most since Sept. 17, to 6,002.09 at the 3:30 p.m. close in Riyadh. The measure lost 1.8 percent this week. The Bloomberg GCC 200 Index added 0.1 percent and oil gained.

The STOXX Europe 600 Index rallied 1.9 percent at 1:55 p.m. in London. The S&P 500 increased 2.3 percent yesterday, reversing losses in the final hour of trading, after the Financial Times quoted Olli Rehn, European Union commissioner for economic affairs, as saying there’s an “increasingly shared view” that the region needs a coordinated approach to halt the debt crisis. Belgian Prime Minister Yves Leterme said a “bad bank” for troubled assets with government guarantees will be set up for Dexia SA.

"Local markets are being impacted by changes in sentiment and global markets are looking healthy" today, said Paul Cooper, Dubai-based managing director at Sarasin-Alpen & Partners Ltd., which oversees more than $500 million in the Middle East. "The quarterly earnings picture should remain positive in the region, especially compared to the U.S. and Europe."

Profit Rises

Jarir’s third-quarter net income advanced to 152 million riyals ($40.5 million) from 103 million riyals in the year- earlier period. The median estimate of four analysts was for a profit of 119 million riyals, according to data compiled by Bloomberg. Qatar National Bank said after markets closed third- quarter profit rose 31 percent to 1.9 billion riyals ($522 million).

Jarir rallied 2.9 percent to 178 riyals, the highest since July 3. Qatar National Bank closed unchanged at 139.5 riyals after gaining as much as 1.1 percent earlier.

Safco soared the most since March 20 to 183.5 riyals.

U.S. crude for November delivery rallied as much as 3.7 percent to $78.46 a barrel in electronic trading on the New York Mercantile Exchange. The Gulf Cooperation Council, which includes Saudi Arabia and the United Arab Emirates, holds more than a third of the world’s proven oil reserves, according to data from BP Plc.

Kuwait’s gauge gained 0.3 percent, while Oman’s MSM 30 Index and Abu Dhabi’s ADX General Index dropped 0.3 percent. Dubai’s DFM General Index declined 0.2 percent and Bahrain’s BB All Share Index fell 0.1 percent. Qatar’s QE Index was little changed.

--Editors: Claudia Maedler, Shaji Mathew

-0- Oct/05/2011 11:43 GMT

-0- Oct/05/2011 12:02 GMT

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net -0- Oct/05/2011 10:56 GMT


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