Saudi Arabia’s stock market rose sharply in heavy turnover during early trade on Thursday as petrochemical shares in particular surged in response to a rebound of global oil prices, to which petrochemical profit margins are linked.
The main Saudi stock index jumped 4.5 percent in the opening minutes as petrochemical blue chip Saudi Basic Industries (SABIC) gained 5.8 percent. The petrochemical sector index added 6.1 percent.
The rise of SABIC and other blue chips such as miner Ma’aden , up 6.0 percent, suggested institutional investors were back in the market after cutting positions in recent weeks and months.
Tuesday’s 7.4 percent rebound of the Saudi market, after it had lost 23 percent in August, convinced many investors that stocks had established a floor for at least the short term – though not necessarily in the longer run, given the uncertainty about oil prices.
Egypt’s stock index climbed 2.9 percent in the opening minutes of Thursday, boosted by the improved global equities backdrop. Major real estate developer Palm Hills Development climbed 4.1 percent.
Source: Reuters
