Insurance, telecoms & IT boost Saudi stocks

23/07/2015 05:53 AST

JEDDAH — Saudi Arabia stocks were higher after the close on Wednesday, as gains in the Insurance, Telecoms & IT and Financial Services sectors led shares higher.

The stock benchmark Tadawul All Share Index gained 0.46% to hit a new 1-month high at 9,381.01 points..

The best performers of the session on the Tadawul All Share were Al Alamiya Cooperative Insurance, which rose 9.68% or 5.23 points to trade at 59.25 at the close. Meanwhile, National Petrochemical Company added 7.43% or 1.91 points to end at 27.60 and Malath Cooperative Insurance Co was up 5.71% or 2.02 points to 37.40 in late trade.

The worst performers of the session were Arabian Cement Co, which fell 2.49% or 1.89 points to trade at 74.00 at the close. Saudi Basic Industries Corp declined 1.99% or 2.03 points to end at 99.75 and Al Hokair Group was down 1.69% or 1.50 points to 87.00.

Rising stocks outnumbered declining ones on the Saudi Arabia Stock Exchange by 134 to 31. Oil prices resumed their decline Wednesday following a US report showing that stockpiles surged last week, with analysts warning of further weakness ahead.

Ahead of an official US government report, the industry-funded American Petroleum Institute said stockpiles increased by 2.3 million barrels last week.

US benchmark West Texas Intermediate for delivery in September fell 58 cents to $50.28 a barrel.

Brent North crude for September slid 35 cents to stand at $56.69 a barrel in London midday deals. Both contracts had posted gains Tuesday. "Crude prices remain under pressure as the supply overhang continues to persist," said Bernard Aw, market strategist at IG Markets.

Wednesday's official Energy Information Administration data "will be closely monitored, although it is evident that the supply glut problem is expected to stay for a while longer," Aw added.

Oil prices have tumbled from more than $100 a barrel in June last year as strong production from the United States and the Organization of the Petroleum Exporting Countries led to supply outpacing demand.

Concerns over the return of Iranian oil to the market following a deal with major powers on its nuclear ambitions have also depressed prices.

The deal – which aims to prevent Iran from building a nuclear weapon – allows for the lifting of crippling economic sanctions on the country, enabling it to ramp up shipments of oil.

A strong greenback, boosted by the prospect of higher US interest rates, has also dented demand for dollar-priced oil and helped push prices downwards.

Saudi Gazette