03/05/2011
Tadawul index surges 0.53%
Tadawul index rises as upbeat Q1 earnings boost sentiment
Petrochemical stocks lifted Saudi Arabia's index on Monday, with more gains seen as upbeat earnings and high oil prices boost sentiment in the world's top crude exporter.
Regional markets were subdued, with bourses in many global markets closed for a long weekend.
"I wouldn't read too much into today's (Monday’s) movements - we tend to drift when there are holidays on global markets," said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading. "We've made a good bounce from the lows in the past month and a half and need new positive catalysts."
Saudi Basic Industries Corp. (SABIC) climbed 0.9 percent and Rabigh Refining and Petrochemical Co. rose 2.5 percent. Petrochemical producers' margins rise along with oil prices and crude hit a 31-month peak on Friday.
"People took advantage of yesterday's (Sunday’s) dip to buy back, mainly petrochemicals," said a Riyadh-based trader who asked not to be identified.
The Tadawul All-Share index (TASI) climbed 0.53 percent to 6,719.53, its first gain in three days to move within five points of Wednesday's 14-week high.
The stock market turnover reached SR4.83 billion.
"As long as the international news flow is positive, Saudi should continue to advance because Q1 numbers were good and oil is above $110," added the trader.
