Saturday 28 August 2010

Saudi Shares Gain Most in One Month on Oil Price Rally, Bernanke Comments - Bloomberg

Saudi Arabian shares rose the most in a month, after U.S. and European markets advanced and oil prices rallied on a pledge by U.S. Federal Reserve Chairman Ben S. Bernanke to maintain the U.S. economic recovery.

Saudi Basic Industries Corp., the world’s largest petrochemicals maker, known as Sabic, advanced to the highest since Aug. 23 after oil prices rose by $1.7 a barrel in the past week. The Tadawul All Share Index gauge gained 0.9 percent, the most since July 27, to 6,055.54, at the 3:30 p.m. close in Riyadh. The gauge pared its loss since the start of August to 3.6 percent.

“The market is reacting positively to a higher close for oil over the weekend,” said Anas Kassem, an investment analyst at Ajeej Capital in Riyadh, “in addition to Bernanke’s speech yesterday which helped western markets bounce back at the end of a difficult week.”

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