Rajhi leads the charge in Saudi Arabia

Saudi Arabia’s stock market rose yesterday, with busy trade on positive investor sentiment, higher oil prices and solid gains by blue chips.

The main mover was Al Rajhi Bank which announced a capital increase, while other regional markets also closed higher.

Oil rose nearly 2 per cent on Friday after proposed trade talks between the United States and China eased some fears about a global economic slowdown.

The Saudi index, the Middle East’s biggest, rose 1.3 per cent at 7,932 points to almost a three-week high.

Al Rajhi, the kingdom’s second-largest lender by assets, jumped 5.1 per cent amid heavy trade after it announced plans to increase capital to 25 billion riyals from 16.25 billion riyals through distributing 7 bonus shares for every 13 shares owned.

“US market closed 700 points higher on Friday leaving a positive sentiment across the board,” said Marie Salem, director of capital markets at FFA Private Bank Dubai.

“The announcement by Rajhi Bank helped to maintain that [momentum] giving the regional markets a push higher,”

Petrochemical giant Sabic rose 1.4 per cent, Saudi Arabian Mining Company jumped 3.3 per cent, and the Arabian Gulf’s largest dairy company Almarai jumped 5 per cent.

Elsewhere in the region, Dubai’s index closed 0.2 per cent higher to 2,531 points as Dubai Islamic Bank added 1.4 per cent and Emirates NBD gained 0.6 per cent. Developer Damacx Properties rose 1.3 per cent.

In Abu Dhabi, the index rose 0.2 per cent to 4,904 points with First Abu Dhabi Bank up 0.6 per cent and Dana Gas gaining 1.7 per cent.

In Egypt the index rose 0.6 per cent to 13,338 points, while the Kuwait index was up 0.7 per cent at 5,377 points. The Omani index rose 0.6 per cent to 4,302 points. Meanwhile Bahrain’s index edged up 0.4 per cent to reach 1,331 points.

Dubai’s index closed 0.2 per cent higher to 2,531 points as Dubai Islamic Bank added 1.4 per cent