Wednesday, 18 April 2012

MIDEAST WEEKAHEAD-Saudi Arabia stocks to resume gains at steadier pace | Reuters

Saudi Arabia's stock market rebound looks poised to continue next week as a spate of encouraging corporate earnings reports has boosted sentiment and valuations look attractive after the market's recent sharp correction.

Forecast-beating earnings from chemicals giant Saudi Basic Industries (SABIC) h elped push the blue chip index off a seven-week trough on Tuesday, halting a correction that had seen stocks plummet 8 percent in the last two weeks, cutting into a 31 percent rally over the previous four months.

Analysts now expect blue chips, which have underperformed small caps this year, will lead shares higher.

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