TASI edges over 6,000 as oil supports

The Tadawul All Share Index (TASI) ended 0.8 percent higher at 6,023—its highest close in about 45 days—amid relatively stronger volumes of SAR 6.3 billion. 

Market participants seemed to have shrugged off the negative news from S&P regarding rating downgrades of some Saudi-listed companies and instead focused on Brent crude prices reaching close to $35/bbl and attractive valuations.

“If global oil prices continue to strengthen, we can expect the market to react positively as well, particularly with regards to news flow on a possible agreement amongst major world oil producers,” Muhammad Faisal Potrik, head of research at Riyad Capital told Argaam.

Nearly all sectors advanced, with petrochemicals pivoting into positive territory toward the end of trading. Index major, SABIC, however ended 0.6 percent lower at SAR 72.50.

Chemanol finished 1.4 percent higher at SAR 5.65, albeit down from session high of SAR 5.90. The company cut its cost impact projections after Aramco said it would be supplied feed stock gas at old rates till June.

Almarai rose nearly 2 percent to SAR 64.50. QFIs have been raising their stakes in the dairy producer over the past few days.

Elsewhere, actively traded midcap stocks continued to gain in strength.

Meanwhile, Brent crude, the key benchmark for the Middle East’s crude exporters, was last trading up over 1 percent at $35.04 per barrel on London’s ICE.

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