RIYADH (AFP) — The stock market in oil powerhouse Saudi Arabia, the largest in the Arab world, rose by six percent on the first day of the trading week on Saturday, with all sectors, but chiefly the leading petrochemicals sector, showing gains.
The Tadawul All-Shares Index (TASI) closed on 5,871.24 points, up 6.02 percent on last week's close on Wednesday.
All sectors were up, with petrochemicals surging 9.06 percent gain as petrochemicals giant SABIC finished the day 9.85 percent up.
The construction sector also climbed by more than nine percent while the banking sector registered a more modest gain of 3.72 percent.
The Saudi stock market trades from Saturday to Wednesday, while other bourses in oil-rich Arab countries in the Gulf operate from Sunday to Thursday.
The TASI finished last week down 10.1 percent and shed a massive 25.8 percent in October amid the global financial turmoil. The index is 46.81 percent lower than at the end of last year.
The Saudi bourse's gains on Saturday came a day after US and European share markets ended their week with solid gains at the end of a month of wild volatility and losses amid fears that a deep recession lies ahead.
The total value of shares listed on stock markets in the Gulf region plummeted by 250 billion dollars in October as indexes sank by an average 25 percent amid the global market meltdown.
A mild upturn at the end of the month did little to counteract the earlier rout and markets in the oil-rich states ended October worth 720 billion dollars, an enormous 400 billion less than at the start of the year.
Bourses in Gulf states other than Saudi Arabia closed slightly higher at best on Thursday, their final trading day of the month, as low investor confidence prevented them from responding to a huge rally by global stock markets in the previous few days.
Investors also failed to react to concerted support moves by Gulf state governments, such as injection of funds in the financial system and the guaranteeing of bank deposits.
Dubai topped the list of October losers, diving 28.7 percent, while Oman fell 26.9 percent. Doha plunged 25.6 percent, Kuwait shed 23.8 percent and Abu Dhabi was down 16 percent.
Copyright © 2009 AFP. All rights reserved. More »
