Saudi Arabian shares advanced for the first time in four days as government and industry reports from the U.S. and China fueled confidence in a global and Saudi economic recovery.
The Tadawul All Share Index gauge advanced 0.1 percent to 6,397.16 in Riyadh today. Banque Saudi Fransi, the Saudi lender part-owned by Credit Agricole SA, and Riyad Bank led the advance. Tadawul gained 3.8 percent last month.
Saudi Arabia’s economy is expected to grow 3.5 percent this year, compared with 0.6 percent in 2009, on the global economic recovery and oil prices, Saudi central bank Governor Muhammad al-Jasser said at a news conference on Sept. 26. The kingdom may report a 40 billion-riyal ($10.7 billion) budget surplus this year, compared with a budget deficit of 70 billion riyals in 2009, according to a report last month by Al-Rajhi Capital.
U.S. data on Sept. 30 showed the economy grew at a 1.7 percent annual rate in the second quarter, faster than the 1.6 percent previously estimated. A purchasing managers’ index from HSBC Holdings Plc and Markit Economics on Sept. 29, showed that manufacturing accelerated in China in September.
“Generally, the Saudi market will react to more aggressive moves in the U.S., Europe or Asia,” said Anas Kassem, an investment analyst at Ajeej Capital in Riyadh. “It is lacking much conviction whether to be bearish or bullish. Investors have been positioning themselves for third-quarter earnings for the last week or so.”
Banks Gain
U.S. stocks slipped, halting the longest streak of weekly gains since April, as lingering concerns that Europe’s government debt crisis may threaten the economic recovery. The Standard & Poor’s 500 Index fell 0.2 percent to 1,146.24 over the past five days, halting four straight weeks of gains. The benchmark for U.S. stocks rallied 8.8 percent in September to erase its 2010 loss.
Banque Saudi Fransi, the Saudi lender part-owned by Credit Agricole SA, gained 1.7 percent to 48.5 riyals. Riyad Bank, the third largest lender by market value, advanced 1.4 percent to 28.7 riyals. Arab National Bank gained 1.7 percent to 42.3 riyals.
Saudi Arabia’s is the only Gulf Arab benchmark tracked by Bloomberg that trades on a Saturday.
To contact the reporters on this story: Glen Carey in Riyadh at gcarey8@bloomberg.net;
To contact the editor responsible for this story: Peter Hirschberg at phirschberg@bloomberg.net.
http://jodnet.blogspot.com
The Tadawul All Share Index gauge advanced 0.1 percent to 6,397.16 in Riyadh today. Banque Saudi Fransi, the Saudi lender part-owned by Credit Agricole SA, and Riyad Bank led the advance. Tadawul gained 3.8 percent last month.
Saudi Arabia’s economy is expected to grow 3.5 percent this year, compared with 0.6 percent in 2009, on the global economic recovery and oil prices, Saudi central bank Governor Muhammad al-Jasser said at a news conference on Sept. 26. The kingdom may report a 40 billion-riyal ($10.7 billion) budget surplus this year, compared with a budget deficit of 70 billion riyals in 2009, according to a report last month by Al-Rajhi Capital.
U.S. data on Sept. 30 showed the economy grew at a 1.7 percent annual rate in the second quarter, faster than the 1.6 percent previously estimated. A purchasing managers’ index from HSBC Holdings Plc and Markit Economics on Sept. 29, showed that manufacturing accelerated in China in September.
“Generally, the Saudi market will react to more aggressive moves in the U.S., Europe or Asia,” said Anas Kassem, an investment analyst at Ajeej Capital in Riyadh. “It is lacking much conviction whether to be bearish or bullish. Investors have been positioning themselves for third-quarter earnings for the last week or so.”
Banks Gain
U.S. stocks slipped, halting the longest streak of weekly gains since April, as lingering concerns that Europe’s government debt crisis may threaten the economic recovery. The Standard & Poor’s 500 Index fell 0.2 percent to 1,146.24 over the past five days, halting four straight weeks of gains. The benchmark for U.S. stocks rallied 8.8 percent in September to erase its 2010 loss.
Banque Saudi Fransi, the Saudi lender part-owned by Credit Agricole SA, gained 1.7 percent to 48.5 riyals. Riyad Bank, the third largest lender by market value, advanced 1.4 percent to 28.7 riyals. Arab National Bank gained 1.7 percent to 42.3 riyals.
Saudi Arabia’s is the only Gulf Arab benchmark tracked by Bloomberg that trades on a Saturday.
To contact the reporters on this story: Glen Carey in Riyadh at gcarey8@bloomberg.net;
To contact the editor responsible for this story: Peter Hirschberg at phirschberg@bloomberg.net.
http://jodnet.blogspot.com
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