Rajhi leads Saudi morning jump, other markets firm

RIYADH: Saudi Arabia’s stock market jumped in the early trade yesterday on positive investor sentiment, higher oil prices and solid gains by blue chips, led by Al Rajhi Bank which announced a capital increase, while other markets rose slightly.

Oil rose nearly two per cent on Friday after proposed trade talks between the US and China eased some fears about a global economic slowdown.

The Saudi index, the region’s biggest, jumped 1.2 per cent to almost a three-week high. Out of 165 traded stocks, 112 advanced and 35 declined.

Al Rajhi, the kingdom’s secondlargest lender by assets, jumped 5.4 per cent amid heavy trade after it announced plans to increase capital to 25 billion riyals (US$6.7 billion) from 16.25 billion riyals through distributing seven bonus shares for every 13 shares owned.

It added in a bourse filing that the increase aims to support the bank’s resources, what will contribute to good growth ratios in the future.

Petrochemical giant Sabic rose 0.7 per cent, Samba Financial Group added 1.1 per cent and Saudi Kayan rose 2.2 per cent.

Elsewhere in the region, the Qatar index rose 0.3 per cent as Qatar National Bank and Qatar Islamic Bank added 0.7 per cent each. The Dubai index rose 0.4 per cent. Dubai Islamic Bank rose 0.6 per cent and property developer DAMAC Properties jumped 2.6 per cent.

Abu Dhabi’s index added 0.8 per cent, with most traded stocks advancing.

First Abu Dhabi Bank gained 1.4 per cent and Dana Gas jumped 4.2 per cent. — Reuters