JEDDAH: Saudi Arabia's stock benchmark Tadawul All Share Index Index (TASI) hit a new seven-month peak Tuesday, but bluechips were little moved in a muted response to the Kingdom's record budget. It climbed 0.15 percent to 6,605.47 points. Saudi plans to spend SR580 billion ($155 billion) in 2011 as it tries to create jobs for its fast-growing population. “Saudi Arabia is still expanding its spending, focusing on education, healthcare and infrastructure and the budget seems to also be aimed at stimulating the private sector,” said Haissam Arabi, chief executive of Gulfmena Alternative Investments. “The market should go up some more. Saudi is back in focus.” The index rose 0.2 percent to its highest close since May 12, with the headline budget figure already priced in, analysts said. Saudi Telecom Co rose 1.2 percent. Arabi was bullish about the Kingdom's long-term prospects, but warned this year's spending - also a record - has had little impact on listed firms. “There's still a disconnect, but it probably takes time to trickle down to the private sector,” he said. The building and construction index rose 0.5 percent to take its gains to 12 percent in December as investors bet on a windfall from bumper state spending. “Investors should be cautious – builders' Q4 earnings won't be that great, while project announcements would not feed into the bottom line for another six to eight months,” said a Riyadh-based trader. Elsewhere, Dubai index climbed 0.4 percent to 1,626 points. Kuwait index rose 0.3 percent to 6,820 points. Abu Dhabi benchmark fell 0.7 percent to 2,698 points. Qatar measure climbed 0.4 percent to 8,664 points. Oman benchmark rose 0.4 percent to 6,710 points. Bahrain measure slipped 0.2 percent to 1,424 points.
