JEDDAH: Saudi Basic Industries Corp (SABIC) closed at its highest value in more than two years, lifting the Saudi benchmark Tadawul All Share Index (TASI) by 0.35 percent at 6,699.96 points at Tuesday close. SABIC gained 1.4 percent, buoyed by global oil prices that hovered over the $91 a barrel mark. It closed at SR108.50, its highest close since September 2008. "Oil prices have been helping the Saudi market and this will continue to keep the index on the positive side," said Hesham Tuffaha, Bakheet Investment Group head of research. However, trading volumes remain low as investors stay on the sidelines awaiting the corporate earnings report. Oil hovered near the highest price levels in more than two years on accelerating manufacturing activity in developed economies and expectations that US crude inventories will continue to drain. Oil prices rose to near $92 a barrel Tuesday, close to a two-year high, as a stock market rally to start 2011 boosted crude trader optimism. By early afternoon in Europe, benchmark oil for February delivery was up 35 cents to $91.90 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 17 cents to settle at $91.55 Monday. In London, Brent crude rose 66 cents to $95.50 a barrel on the ICE Futures exchange. Heavyweight Emaar Properties dropped 1.1 percent, leading a decline, as Dubai's index gave up early gains. Other property stocks also declined, with builder Arabtec slipping 0.5 percent and Deyaar dropping 0.3 percent. The index slipped by 0.2 percent, ending at 1,659 points. Abu Dhabi's index ADI also dropped 0.2 percent to 2,748 points. Industries Qatar ended 1.5 percent higher, continuing its winning streak, as Qatar's index QSI advanced for a fifth session in a row. Most other shares also moved up, as traders hoped to see the index cross the 9,000 mark in the coming days. "There's been a positive momentum from last year, after the World Cup announcement," said Robert Pramberger, acting head of asset management at Doha-based investment company The First Investor. "Sectors like infrastructure, shipping and even banks will benefit as Qatar will spend in preparations for the World Cup." The index advanced by 1.1 percent to 8,973 points. In Kuwait, telecom firm Zain slipped 1.3 percent but bank stocks lead a rally, lifting the broader index KWSE. National Bank of Kuwait gained 1.4 percent and Kuwait Finance House rose 1.7 percent. "Investors are positive on the banking sector. They are expected to take much less provisions and also dividends will be coming," said Essa Al Hasawi, assistant manager at Zumorroda Investment Co in Kuwait. The index rose 0.4 percent to 6,974 points.
