Saudi Arabia’s benchmark stock index rose to the highest in almost three weeks, led by banks and petrochemicals, after U.S. stocks rallied for a fifth week on an improving labor market and better-than-estimated earnings.
Yanbu National Petrochemicals Co. (YANSAB) climbed to the highest nine months, while Alinma Bank gained the most in two weeks. Dar Al Arkan Real Estate Development Co. (ALARKAN) increased to an almost four-week high.
The Tadawul All Share Index gained 0.2 percent to 7,057.59 by the 3:30 p.m close in Riyadh, the highest since Jan. 14, according to data compiled by Bloomberg. Saudi Arabia’s stock exchange is the only Persian Gulf bourse that trades on Saturdays.
“The Saudi stock exchange benefited a lot from global markets reacting to the developments in the U.S. economy,” Fadhel Albuainain, a Jubail-based banking economist, said by phone.
The U.S. rally sent the Dow Jones Industrial Average above 14,000 for the first time in five years, as data on the labor market and manufacturing boosted confidence in the world’s biggest economy. Of the 254 S&P 500 companies that have posted results, 73 percent exceeded analysts’ profit estimates and 65 percent topped sales projections, data compiled by Bloomberg show.
Yanbu National Petrochemicals rose 1.4 percent to 52.75 riyals while Alinma Bank (ALINMA) increased 1.1 percent to 13.65 riyals. Dar Al Arkan Real Estate gained 1.1 percent to 8.95 riyals.
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