Saturday 1 January 2011

Saudi Shares Reach Eight-Month High, Buoyed by Crude Oil Gains, Earnings - Bloomberg

Saudi Arabian shares rose to the highest level in almost eight months, led by petrochemicals and builders, as oil surged to its highest year-end price since 2007 and investors start the year with expectations companies will post encouraging quarterly earnings.

Saudi Basic Industries Corp., the world’s largest petrochemical maker, Saudi Industrial Investment Group and Arabian Pipes Co. paced the rally. The 146-company Tadawul All Share Index rose 0.3 percent to 6,640.45, the highest since May 15, at 1:57 p.m. in Riyadh.

“The price of oil shifted into high gear this past quarter and that has pushed investors to bet big on fattened oil company profits,” said Amro Halwani, a trader at Shuaa Capital PSC in Riyadh. “People are pinning in their hopes on growth in corporate earnings as it is starting to look more and more entrenched.”

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