SABIC jumps as oil gains support TASI

Saudi Arabian shares pivoted from early declines on Monday to close the slightly higher as oil prices jumped following the diplomatic crisis that led to three Gulf Cooperation Council (GCC) states severing relations with Qatar.

Jason Tuvey of the London-based consultancy, Capital Economics, said there were good reasons to think that the impact of the political on these economies and global energy markets would be limited.

“We suspect that the region’s economies are likely to shrug off the dispute. Trade ties between Qatar and the rest of the region are relatively small,” he said in a note.

The benchmark Tadawul All Share Index (TASI) closed 0.5 percent higher at 6,965. Turnover was relatively more robust at SAR 3.9 billion as nearly 300 million shares changed hands.

While most sectors declined, the index was supported by the strength in petrochemical stocks as the geopolitical situation caused oil prices to rise.  

The regional petrochemical giant, SABIC, jumped more than 2 percent, but settled lower at SAR 100.

Elsewhere, banks advanced. Samba climbed nearly 3 percent to SAR 23.02 and National Commercial Bank jumped 1.3 percent.  

Meanwhile, Almarai, which has been a consistent gainer in recent weeks, succumbed to profit-booking, losing 1.6 percent to SAR 80.40. 

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