Saudi Arabian shares rose to a three-week high after a rally in US stocks boosted investor confidence in the Kingdom. Saudi Basic Industries Corp., the world's biggest chemicals maker by market value, climbed for a third day, while Al-Rajhi Bank rose to its highest in more than three weeks. Arab National Bank increased after announcing a dividend. “Gains in the US are helping inventors regain some confidence,” Ahmed Alghamdi, a sales trader at National Commercial Bank, told Bloomberg in a telephone interview from Jeddah. “The liquidity crisis is international, not domestic, and most company profit declines are already priced in,” he was quoted as saying. The Tadawul All Share Index climbed 2.8 percent to 4,928.65, gaining for a third day. The index rose to its highest level since Jan. 14. The measure has risen 2.6 percent this year. Sabic rose 4.5 percent to SR48.6. The shares gained the most since January 14. Al-Rajhi Bank, Saudi Arabia's biggest publicly traded lender by market value, added 4 percent to SR58. Arab National Bank increased 1.3 percent to SR31.2. Saudi Arabia's sixth-largest publicly traded lender by assets recommended a cash dividend of SR1 a share for 2008. Rabigh Refining and Petrochemicals, the chemicals and refining complex being built by state-owned Saudi Aramco, surged 9.8 percent to SR19.65. The shares jumped to their highest since Nov. 12. Saudi Kayan Petrochemical Co. advanced 5.8 percent to SR10.95.
