Saudi Arabian shares advanced in the week's first day of trading, led by Saudi Basic Industries Corp, the largest chemical maker in the world by market value, and Al-Rajhi Bank. The Tadawul All Share Index rose 1.09 percent to 5,472.29. The gauge has gained 14 percent this year after losing more than half its value in 2008 as oil prices dropped. The index was lifted by increasing buying orders during the last hour of trading. Food company SAVOLA Group posted the largest gain (up 8.28 percent at SR24.20), followed by petrochemical giant SABIC (closing 4.46 percent higher at SR58.50). after announcing that it got Chinese approval for its Tianjin partnership with China Petroleum & Chemical Corp. The companies plan to invest $3 billion in the project, more than the initial $1.7bn when they announced the joint venture in January 2008. The stock advanced even though Saudi Arabian Fertilizer Co (Safco), which is 43 percent owned by Sabic, posted a 60 percent decline in net income to SR480 million ($128 million). Al-Rajhi Bank, the largest bank in Saudi Arabia by market value, advanced 1.7 percent to SR61.25, giving it a market value of SR91.9 billion. The shares have gained 9.4 percent this year. The Capital Market Authority announced that the listing and trading of Al-Rajhi Company for Cooperative Insurance will commence on Monday (July 13) within the Insurance Sector with the symbol 8230, with an unrestricted price limit for the first day of trading only. Thirty six mostly industry and real estate stocks declined, while 78 securities advanced. Banks ended mixed since the market waits for major Saudi banks to report their Q2 results in the coming weeks. Meanwhile, weak market sentiment and strong impact of global performance are expected to continue in UAE stocks this week as indices are approaching their support areas. Dubai Financial Market is likely to test its support level at 1650 points early this week before being able to bounce back to it resistance area.
