Saudi stock benchmark Tadawul All Share Index closed 1.93 percent higher Saturday at 6,155.88 points, its highest close since August 3 when the market closed at 6,424 points. Saudi Arabian shares rallied for a second day, after US retail sales data eased concern the world's biggest economy is headed for a recession. "The Saudi market, in the footsteps of Asian, European and US markets, took a positive reaction to the US retail sales report," said Akef Al Tanbouz, head of asset management at The Investor Securities in Riyadh. "And oil prices went up over the weekend." The petrochemical and banking sectors spurred the rally. The petrochemical sector added 2.3 percent to 6,273 points and petrochemical giant Saudi Basic Industries Corp (SABIC) closed 2 percent higher. The banking index ended 2.2 percent higher to 14,790 points, lifted by gains in heavyweight Al-Rahji Bank which ended 3.3 percent higher. A US report Friday showed retail sales climbed 0.5 percent in July. The S&P 500 rallied 5.2 percent in the final two days of the week, its biggest back-to-back gain since March 2009. Crude for September delivery rallied 7.7 percent in the past three days to settle at $85.38 a barrel on the New York Mercantile Exchange Friday. "Today we are seeing a relief rally on the market on subsiding anxiety," Asim Bukhtiar, an equity analyst at Riyad Capital. "Fundamentals of the Saudi market are stable despite international debt concerns." SABIC gained 2.3 percent to SR99, the highest intraday price since Aug. 10, and Al-Rajhi surged 2.6 percent, the largest intraday gain since March 20, to SR69.75. National Industrialization, the petrochemicals maker known as Tasnee, rose 2.3 pecent to SR39.50.
