JEDDAH: Saudi shares rose for the third day, led by petrochemical companies and banks, after US stocks posted the biggest weekly rally in two years after Greece took action to avoid a default. Saudi stock benchmark Tadawul All Share Index jumped 1.18 percent to close Saturday at 6,653.68 points. Tadawul All Share Index (SASEIDX) rose 0.9 percent to 6,634.93, the highest level since June 7. The largest bourse by market value in the Middle East has gained 0.2 percent this year. "There is market optimism after Greece avoided a default on its debt," Mohammad Ali Shah, a senior financial analyst at Global Investment House, said. "Following the global markets, Saudi Arabia has seen an upside as well." Saudi shares are also being helped by "the expectations for positive second-quarter results," Shah said. Saudi companies will start to release quarterly earnings results later this month. Saudi Basic Industries Corp. (SABIC) and Al Rajhi Bank paced the gains. Saudi Arabian Mining Co. (Ma'aden), rose for the fifth day after announcing financing for an aluminum project the company is developing in a joint venture with Alcoa Inc. SABIC advanced 1.4 percent to SR105.5, the highest level since June 4. Fitch Ratings affirmed on June 30 SABIC's long-term issuer default rating at A+, citing the company's "strong business profile and moderate leverage." Al-Rajhi Bank gained 0.7 percent to 73.5 riyals, the highest in two weeks. Ma'aden shares gained 1.5 percent to SR27.6, the highest value since June 19. The company said it received commitments for $1 billion in commercial loans to finance the second phase of an aluminum project the company is developing in a joint venture with Alcoa Inc.
