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Saudi stocks soar to record high on upbeat statements

Saudi stocks soar to record high on upbeat statements
By Mohamed Abu Meleeh:
Riyadh-Mubasher: The Saudi Stock Exchange (Tadawul) benchmark continued on Thursday its rise for the second straight session, reaching record levels seen four times in its lifetime.
The market was buoyed by the optimistic statements issued by minister of finance about the state budget and minister of oil about crude prices.
The index rose by 8.92%, which is the fourth biggest gain seen in lifetime. The three other gains were as follows: 9.85% on May 13, 2006; 9.51% on November 29, 2008; and 9.47% on October 13, 2008.
TASI advanced 4.21% on Wednesday, reversing an eight-session losing run in which it shed 1627.33 points, or 18.17%.
The market added 681.65 points today, which is the biggest gains in points since July 17, 2006.
Thus, Tadawul trimmed 61% of the losses seen in the eight-session fall to close at 8320.55 points.
Saudi Arabia’s Oil Minister Ali al-Nuaimi expressed optimism for the future despite crude's price drop of about 50 percent since June, according to AFP.
"It is difficult, or even impossible, for Saudi Arabia or OPEC to undertake any measure that would lead to a reduction in (their) share of the market and an increase in that of others who do not belong to the cartel,” he said in comments to the official Saudi Press Agency.
Meanwhile, Finance Minister Ibrahim Alassaf said on Wednesday that Saudi Arabia will continue spending on development projects and social benefits in its 2015 budget despite "challenging" global economic conditions, according to news agency SPA.
Most sectors collectively headed north, topped by transportation (+11.85%), followed by hotel and tourism (+10.16%), then industrial investment (+10.16%). This is the first to see sectors rising by above 10% since 2008.
The petrochemical industries, construction and energy sectors rose by more than 9%, while banks, telecommunications, multi-investment, agriculture and insurance advanced by more than 8%.
160 stocks moved higher, spearheaded by Ace Insurance (+9.99%), Riyad Bank (+9.98%), Bank Albilad (+9.98%), while Taiba, Gassim Agricultural, Petro Rabigh, Medgulf and AXA Cooperative rose by 9.97% reach.
Translated by Sayed Abdel Rahman
Photo Credit: Arabianeye-Reuters