Saudi Stocks Advance for First Time in Three Days on $70 Oil

09/08/2009 00:00 AST

Saudi Arabian stocks rose for the first time in three days as oil prices remained above $70 a barrel and U.S. companies recorded better-than-estimated second- quarter results, bolstering speculation that the world’s biggest economy is recovering from the recession.

Saudi Arabian Fertilizer Co., a unit of Saudi Basic Industries Corp., the world’s biggest chemical maker by market value, closed at the highest level since July 15, and Rabigh Refining & Petrochemicals Co. rose to the highest since Aug. 3.

“The global equity market continued its increase amid surprising U.S. corporate results, and oil rebounded above the hurdle of $70 a barrel,” Bakheet Group said in its weekly report. “We expect the Saudi stock market to remain dull amid the absence of new factors, while oil prices could impact investor sentiment.”

The Tadawul All Share Index advanced 0.1 percent to 5777.38, rising for the first time in three days. Safco, which manufactures fertilizers, added 1.5 percent to 119 riyals, while Rabigh Refining increased 0.9 percent to 32.7 riyals.

Crude oil for September delivery settled at $70.93 a barrel yesterday on the New York Mercantile Exchange after touching $72.84, the highest intraday price since June 30.

U.S. stocks jumped yesterday after the unemployment rate decreased for the first time since April 2008. While profits at S&P 500 companies are falling for a record eighth straight quarter, results have surpassed projections by an average of 10 percent in the current season.

Saudi Arabia is the only Arab market monitored by Bloomberg that is open on Saturdays.

Bloomberg