Riyadh - Arabstoday
Saudi Arabian shares extended gains for a ninth day after a local bank signed a deal to accelerate home loans and the US jobless rate slid to the lowest level in three years, boosting the outlook for the global economy. Bank Albilad (ALBI), the kingdom’s second-smallest bank by market value, jumped the most in more than eight months. Al Rajhi Bank (RJHI), the largest publicly traded lender by assets, gained for a third day. Saudi Basic Industries Corporation (SABIC), the world’s largest petrochemicals maker, reached its highest close in more than three weeks. The Tadawul All Share Index (Saseidx) rallied 1.1 per cent to 6,733.68 at the 3:30pm close in Riyadh, trimming earlier gains of as much as 1.7 per cent. The gauge rose for a ninth day, the longest winning stretch since the nine days that ended Feb.22, 2010. The 150-member measure has extended this year’s climb to 4.9 per cent. “Banking shares are leading the index driven by a deal signed last week that will help accelerate real-estate lending in the kingdom,” said Turki Fadaak, head of research at Riyadh-based Albilad Investment Co. Riyadh-based Albilad signed an agreement with the Real Estate Development Fund to help accelerate home loans in the Arab Peninsula’s most populous country, al-Sharq al-Awsat reported on Feb.2. Albilad climbed 6.7 per cent, the biggest increase since May 10, to 24 riyals, after surging as much as 10 per cent, the maximum fluctuation allowed in a trading session. Al Rajhi contributed the most to the index’s rally, adding 2.1 per cent, to 74 riyals. The stock has gained 3.1 per cent in the past three days. “Positive employment figures out of the US are one of the factors driving trading today,” said Asim Bukhtiar, head of research at Riyad Capital.Type the text here