Saudi shares hit 32-month high as ‘confidence’ rises
RIYADH: The Saudi stock market surged on Monday to a 32-month high as analysts said higher oil prices and easing anxieties helped fuel confidence.
The Tadawul All-Shares Index (TASI) added one percent to close trading on 8,050.30 points, rising above the psychologically important 8,000-point mark for the first time since August 2015.
“It’s a combination of positive factors that pushed investor sentiment higher,” said Mohammed Zidan, market strategist at Thinkmarket in Dubai.
“Oil prices are holding high above $70 a barrel while geopolitical tensions have eased after Saturday’s US strike on Syria,” Zidan said.
He said that all indications showed increased funds were flowing into the Saudi market, the largest in the Arab world, after the global FTSE Russell index last month granted it secondary emerging market status.
Since the start of the year, TASI has gained 11.4 percent as the kingdom is preparing to list a part of state energy behemoth Aramco locally.
The market, which has a capitalisation close to $500 billion, appeared also to be reacting to decisions by agencies Moody’s and Standard and Poor’s to maintain the kingdom’s ratings mainly due to ongoing economic reforms.