Saudi stocks rose to a two-week high on optimism the kingdom may escape the political unrest sweeping the region as the government introduces economic reforms and on speculation government-back funds bought local assets.
Saudi Basic Industries Corp., the world’s biggest petrochemicals maker, gained 2.7 percent, and Al Rajhi Bank, the kingdom’s biggest lender, jumped to the highest level this month. The Tadawul All Share Index climbed 3.3 percent to 5,950.74 at the 3:30 p.m. close in Riyadh, the highest since Feb. 23. The gauge has gained 12 percent in the past three days, following a 15 percent decline last week. The Tadawul All Share Bank Index rallied 5.5 percent.
“Investors are feeling more confident that the kingdom is less vulnerable to what is happening in the region,” said Amro Halwani, a senior trader at Shuaa Capital PSC in Riyadh. “The government is taking fast steps to introduce reforms, and government-backed funds intervention in the market has put a floor on prices, at least in the short term, and helped widen risk appetite amongst retail investors.”
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