Saudi Arabia's shares rebounded from Monday's three-week low, mirroring gains in world stocks, on a report that Italy may get financial support from China to avoid a default but worries persist on euro-zone debt crisis. Investors were closely following developments in Europe and US amid lack of significant local news flow that may distract. The stock benchmark Tadawul All Share Index gained 0.52 percent to close at 6,068.92 points Tuesday. Petrochemical stocks, closely linked to international markets through oil prices, rose with bellwether Saudi Basic Industries Corp (Sabic) climbing 0.8 percent and heavyweight Saudi Arabian Fertilizers Co. (Safco) gaining 0.9 percent. Insurance sector led by volumes, signaling retail-investors trading on speculation. The sector's index rose 1.1 percent in early trading. The banking and financial sector's banking stocks also rose with Al-Rajhi Bank up 0.7 percent and Banque Saudi Fransi adding 0.7 percent. “If the situation in the euro zone calms, investors should refocus on local fundamentals,” said Paul Gamble, head of research at Jadwa Investment. “There's a lot going on here. All the economic numbers are good ... the fundamentals are very solid.” Elsewhere, like the stock market in Kuwait, the Doha-based QE Index added half a percent, closing at 8,334.27 points. Shares of Qatar National Bank surged in line with the market index half a percent, finishing at QR142.80. Qatar Insurance dived two percent, ending at QR81.00.
