Saudi index rebounds from 3-week low
Riyadh, September 13, 2011
Saudi Arabia's shares rebounded from Monday's three-week low, mirroring gains in world stocks, on a report that Italy may get financial support from China to avoid a default but worries persist on euro-zone debt crisis.
Investors were closely following developments in Europe and US amid lack of significant local news flow that may distract.
Petrochemical stocks, closely linked to international markets through oil prices, rose with bellwether Saudi Basic Industries Corp (Sabic) climbing 0.8 per cent and heavyweight Saudi Arabian Fertilizers Co (Safco) gaining 0.9 per cent.
Insurance sector led by volumes, signalling retail-investors trading on speculation. The sector's index rose 1.1 percent in early trading.
The banking and financial sector's banking stocks also rose with Al-Rajhi Bank up 0.7 per cent and Banque Saudi Fransi adding 0.7 percent.
'We like Saudi Fransi - we think it has strong asset quality, its provisioning volatility is behind them,' said Asim Bukhtiar, head of research at Riyadh Capital. 'There may not be a growth at double digit but stability in earnings is something we value.'-Reuters