Saudi stocks rise for 2nd day led by Sabic after US surge

Bloomberg/Riyadh

Saudi Arabian shares advanced for a second day yesterday, led by Saudi Basic Industries Corp, after the US’s benchmark index climbed to a near-record high this week.

Saudi Basic Industries Corp (Sabic), the world’s largest petrochemical maker, rose to the highest level since February 16. The Tadawul All Share Index gained 0.4% to 7051.18, the highest since February 18, in Riyadh.

The Arab world’s biggest stock exchange has added 3.7% this year, compared with the Dubai Financial Market’s gain of 18%.

National Medical Care has increased four-fold from its book value price of 27 riyals a share since it started trading on March 13.

“The attention is now on the newcomer to the market National Medical Care, which was listed last Wednesday,” said Mohamed al-Omran, a financial analyst and president of the Gulf Center for Financial Consultancy in Riyadh. “The book building valued the stock at 27 riyals, and it closed at 122 riyals a share on the first day. The market is speculative driven by National Medical Care.”

US stocks climbed for the week. The S&P 500 advanced 0.6% to 1,560.70, for its third straight weekly gain. The Dow climbed for a fourth week, adding 117.04 points, or 0.8%, to 14,514.11.

National Medical Care dropped 9.8% to 110 riyals at the close. Saudi Basic Industries advanced 0.5% to 94 riyals.