JEDDAH: Saudi banks rallied, clawing back some of recent losses as investors switched cash from petrochemicals. The Saudi benchmark Tadawul All Share Index rose 0.22 percent to 6,52.01 points. Samba Financial Group climbed 3 percent, Banque Saudi Fransi added 0.7 percent and SABB rose 1 percent. This trio, along with unlisted National Commercial Bank, agreed a $1.33 billion Islamic financing facility with Saudi Electricity Co (SEC) Monday. SEC rose 1.1 percent. “Banking was the worst performer among the main sectors, but it is now stabilizing and starting to make gains,” said Saleh Al-Onazi, vice-president of principal investment at Swicorp. The banking sector index climbed 0.7 percent, trimming its losses since Sept. 25 to 4.7 percent. Bank shares fell following below-forecast third-quarter earnings. Saudi Basic Industries Corp (SABIC) fell 0.2 percent and Yanbu National Petrochemical Co (Yansab) dropped 1.5 percent. “It seems like Saudi petrochemicals have run out of steam and need oil to properly break above $90 for them to get another leg up,” said a Riyadh-based trader who asked not to be identified. “The focus is now shifting away from petrochemicals after they rallied hard for the past two months, with investors now looking for value elsewhere as we close out the year.” Elsewhere in the region, Dubai's index dropped 0.6 percent to 1,644 points. Abu Dhabi's benchmark fell 0.6 percent to 2,728 points. Qatar's measure rose 0.9 percent to 8,816 points. Oman's benchmark fell 0.2 percent to 6,651 points. Kuwait's index edged up 0.02 percent to 6,788 points. Bahrain's measure rose 0.2 percent to 1,427 points. Meanwhile, Middle East and North Africa markets outperformed international equity markets on a regional level, with the DSM 20 (Qatar) the strongest performing market in the region, while the DFM and ADX were back in the red after two months of positive performances, latest markets report from Rasmala Investment Bank said. Tadawul ended the month in the red after losing 0.34 percent compared to the previous month. On a YTD basis, the region's largest exchange is now 3.33 percent in the green. SABIC reported an increase of 3.1 percent during November and its affiliate Saudi Kayan Petrochemical gained 2.3 percent. In the banking sector, Samba Bank led the losses as its stock went down 6.5 percent. SABB was also 5.2 percent in the red and the company plans to sell 5-year dollar denominated bonds. Rajhi Bank closed the month with an increase of 0.6 percent. Banque Saudi Fransi fell 6.0 percent, with speculation it will raise the capital of its Syrian unit bank.
