JEDDAH – Saudi shares closed higher Saturday led by gains in the banking and petrochemical stocks. Stock benchmark Tadawul All Share Index ended 0.86 percent higher at 6,951.66 points and the petrochemical index ended 0.6 percent higher at 6,053 points. Petrochemical giant Saudi Basic Industries Corp. (Sabic) gained 1.4 percent. The petrochemical index ended 1 percent higher at 15,779, boosted by gains in heavyweight Al Rajhi Bank which added 1.4 percent. "Given the positive sentiment in global markets and resultant lift in crude prices, we expect the Saudi market to react similarly," Asim Bukhtiar, head of research at Riyad Capital, said in response to e-mailed questions. "Petrochemicals and banks should rise and drive the market today." Sabic gained 1.1 percent to SR90.75, while Yanbu National advanced as much as 4.3 percent before trading 2.8 percent higher at SR47.50. Al-Rajhi increased 1.7 percent to SR74. World stocks rallied, US oil jumped nearly 5 percent and the euro surged Friday on news US employers increased hiring in July by the most in five months and on renewed optimism that Europe was closer to action on its debt crisis. The euro rose as high as $1.2392 and was last up 1.6 percent at $1.2370. The dollar gained 0.5 percent against the yen, to 78.60 yen, after hitting a two-week high of 78.77. On Wall Street, the S&P 500 rallied to its highest level since early May. The Dow Jones industrial average was up 217.29 points, or 1.69 percent, at 13,096.17. The Standard & Poor's 500 Index was up 25.99 points, or 1.90 percent, at 1,390.99. The Nasdaq Composite Index was up 58.13 points, or 2.00 percent, at 2,967.90. In the oil market, NYMEX September crude settled at $91.40 a barrel, jumping 4.9 percent, front-month crude's biggest one-day gain since June 29. Brent crude rose $3.04, or 2.87 percent, to settle at $108.94. Gold also climbed, with spot gold up 0.9 percent at $1,604.10 an ounce. – SG/Agencies
