Oil rally helps boost Saudi stocks

Supply disruptions, coupled with a bullish price outlook from Goldman Sachs, pushed Brent crude futures to near $49 levels on Monday, delivering a last-minute boost to Saudi stocks.

The Tadawul All Share Index (TASI) closed 0.1 percent higher at 6,699 points with volumes picking up towards the end of the session to hit SAR 5.3 billion.

Petrochemical stocks gained 0.6 percent, mirroring the moves in oil prices. Tasnee rose 4.8 percent to SAR 12.40 and Yansab added 2.4 percent. SABIC, however, slipped 0.4 percent to SAR 83.75.

Elsewhere, retail and food stocks advanced. Farm Superstores jumped 8 percent to SAR 47. Al Hokair added 4.5 percent to SAR 39.

Among food and agriculture stocks, Wafrah rose 3.5 percent, while Nadec added 2.8 percent.

Maaden added to recent gains, rising 1.4 percent to SAR 41.70. The stock had gained nearly 10 percent in the past three sessions.

Saudi Fransi Capital said in a note that although the stock has recently outpaced the target share price of SAR 28.50, “the miner’s fortunes are linked to underlying commodity prices, which are expected to remain under pressure.”

Meanwhile, Basic Chemical fell 2.3 percent after the stock went ex-dividend yesterday.

Write to Brinda Darasha at brinda.d@argaamplus.com