Saudi shares hit highest in 3 weeks

Bloomberg/Riyadh

 Saudi Arabian shares rose to the highest level in almost three weeks yesterday, led by petrochemicals and telecommunication stocks responding to company announcements and after US job growth exceeded forecasts.

Etihad Etisalat Co, the country’s second-largest telecommunications operator, advanced to a six-year high. Saudi Arabian Fertiliser Co, owned 43% by Saudi Basic Industries Corp, rose to the most in more than four years.

The Tadawul All Share Index gained 0.7% to 6778.09 at the 3.30pm end of trading in Riyadh, the highest close since November 17. The Arab world’s biggest stock exchange has gained 5.6% this year.

Oil posted its first weekly decline since early November and the dollar strengthened against the euro after the US job data. Crude for January delivery dropped 33 cents to $85.93 a barrel on the New York Mercantile Exchange on Friday.

Saudi Arabia is content with current prices, Oil Minister Ali al-Naimi said on Friday.

Saudi Arabian Fertiliser (Safco) rose 4% to 156 riyals after publishing a plan to increase its capital by a third. Etihad Etisalat, known as Mobily, climbed 2.7% to 77 riyals after saying it would resume sales to new subscribers on prepaid SIM cards. It reached 77.25 riyals, the highest since September 2006.

Saudi Arabia’s stock exchange is the only Gulf bourse operating on Saturdays.