Saudi Arabia's petrochemical stocks rallied, pushing the index up after concerns on a possible US debt default were put to rest. The stock bechmark Tadawul All Share Index broader index gained 1.25 percent to close at 6,471.82 points, the highest advance in the Gulf region Monday. Saudi Basic Industries Corp (SABIC), the world's largest chemicals producer, gained 2.43 percent, closing at SR105.25. All other petrochemical stocks also rose. The sector's index climbed 2.2 percent, accounting for a quarter of all shares traded on the index. All sectoral indices also registered gains. "In the banking sector, we like Banque Saudi Fransi, it's at an attractive valuation," said Asim Bukhtiar, head of research at Riyadh Capital. "Also Al Rajhi and Arab National Bank look good." Heavyweight Al-Rajhi Bank climbed 0.7 percent, while Fransi and Arab National Bank slipped 0.2 and 0.3 percent, respectively. A last-minute deal in Washington to raise the debt ceiling spurred a rally in world stocks. Investors are betting the deal means a US economy will avoid default. Elsewhere, UAE property stocks lifted the bourses on back of positive sentiment in global markets but muted trade limits gains. Abu Dhabi's index climbed 0.7 percent to 2,638 points, rising from Sunday's two-month low. Volumes slipped to twelve-day low. Aldar Properties rose 2.4 percent and Sorouh Real Estate climbed 1.6 percent. "We've been seeing subdued trading activity for almost two weeks now, a combination of summer lull and the start of the Holy month of Ramadan today," said Sleiman Aboulhosn, assistant fund manager at Al Masah Capital. Dana Gas ended flat for a second day since it hit a two-week high Thursday after reports of a possible takeover bid by investment vehicle Vallares. Egypt has met all delayed gas payments to UAE's energy firm this month, after resolving issues of gas volume measurements, an Egyptian official said Thursday. "Sentiment around the name remains strong leading us to be more optimistic about the Dana Gas' short-term prospects," Aboulhosn added. Dubai's Emaar Properties climbed 2.8 percent. The emirate's index extended gains for a second day, up 0.6 percent to 1,526 points. In Qatar, mid-caps helped lift the index by 0.1 percent to 8,412 points. Qatar Islamic Bank and Masraf Al Rayan climbed 0.6 percent each. Kuwait's measure ended 0.1 percent higher at 6,037 points.
