Saudi ends above key 7,000 mark
Riyadh, May 21, 2012
Saudi Arabia closed above a key psychological level as buyers returned to the market in search of bargains after a euro zone-induced sell-off earlier in the week.
The Saudi index rose 0.7 percent to 7,029 points, its biggest one-day gain since April 28. "It (7,000 level) is a pretty important marker," remarked Amer Khan, fund manager at Shuaa Asset Management.
"There are still very attractive fundamentals in Saudi and while, in the near-term, there are no significant domestic catalysts, as we edge closer to second-quarter results we can expect to see some of these strengths come through," he added.
Saudi Advanced Industries Company, which said on Monday it would book a SR17 million ($4.5 million) loss after selling its 20-per cent stake in NPS Energy, ended 2.5 per cent down, trimming 2012 gains to 44.9 per cent.
Heavyweight Saudi Basic Industries Corp rose 0.5 per cent, while the petrochemical index gained 0.6 per cent.
Having hit a 2012 low on Friday, Brent crude rose 73 cents to $107.87 a barrel by 1151 GMT on hopes China could take steps to stimulate growth and lift fuel demand at the world's second largest oil user.-Reuters