Saudi Shares Snap 4-Day Losing Streak On Oil; Dar Al Arkan Jumps
Published Saturday, 14 July 2012 16:54 | Written by Amwal Al Ghad
Saudi Arabian shares snapped a four- day losing streak after oil prices gained and Dar Al Arkan Real Estate Development Co. (ALARKAN) said holders of its $1 billion Islamic bonds will be repaid July 16.
Dar Al Arkan, which plunged 20 percent last week, advanced the most since March 24. Mobile Telecommunications Co. Saudi Arabia (ZAINKSA), the mobile-phone company known as Zain Saudi, surged 5.2 percent. The benchmark Tadawul All Share Index (SASEIDX) rose 0.6 percent, the most since July 3, to 6,701.09 at the close in Riyadh.
U.S. stocks rose for the week and oil prices advanced 3.1 percent last week to $87.10 a barrel amid investor speculation China, the world’s second-largest economy, may take more measures to stimulate growth. Saudi Arabia is the world’s biggest exporter of crude oil.
“Globally there is some recovery in oil prices and some of the sentiment from these international events is reflected in today’s activity,” said Asim Bukhtiar, a head of research at Riyad Capital.
Dar Al Arkan surged 9.8 percent to 8.95 riyals. The company, Saudi Arabia’s largest publicly traded property developer, said it transferred the money to Deutsche Bank AG and sukuk holders will receive the funds on July 16, according to a regulatory filing today.
Zain Saudi jumped as much as 8.9 percent to 13.5 riyals before trimming gains to close at 13.05 riyals.