Saudi Arabian shares, led by petrochemical makers, rallied to their highest level since August as post-Eid investors reacted to leadership changes in Greece and Italy. Saudi Basic Industries Corp., the world's largest petrochemicals producer, gained more than 1 percent, while Arab National Bank advanced more than 3 percent. The 149-company Tadawul All Share Index rose 0.6 percent to 6,252.95 Saturday. Eight shares increased for every stock that fell. “After the long Eid break, good news flow coming from Europe over the week and oil in the high $90s, the Tadawul index is catching up with performance,” said Samer Darwiche, an analyst at Gulfmena Investments in Dubai. The Saudi bourse was closed Nov. 5 to Nov. 9 for the Muslim holiday of Eid-al-Adha. US and European stocks rose this past week as Italy's approval of debt-reduction measures and the selection of a new Greek premier eased concerns Europe's debt crisis will worsen. The S&P 500 gained 0.9 percent and the benchmark Stoxx Europe 600 Index increased 0.5 percent. “The market is slightly high as the petrochemicals index rose above 1 percent,” said Turki Fadaak, head of research at Riyadh-based Albilad Investment Co. “The market may further rise this week after it has become free of negative data from Europe.” SABIC strengthened 1 percent to SR97 at 1:36 p.m., its highest intraday price since Oct. 31. The company's growth in petrochemicals is underpinned by Europe and China, Chief Executive Officer Mohamed Al-Mady said Oct. 17. Arab National gained 2.1 percent to SR28.60, its highest price since Sept. 18. Basic Chemical Industries climbed the most in two weeks, gaining 1.3 percent to 23.85 riyals after saying production will resume at a chlorine gas unit in Dammam. US blue chip stocks turned in a solid gain on Friday on the back of good earnings reports to rack up a positive week, but feeble tech stocks left the Nasdaq with its second weekly loss in a row. Stocks traded wildly again as debt-focused Greek and Italian politics kept investors on both sides of the Atlantic struggling for indicators or sentiment. But risk appetite emerged Friday after both Athens and Rome replaced their respective prime ministers with economic technocrats and moved to implement austerity plans that markets see as crucial to stabilize the eurozone. Helped by Friday's big jump, the Dow Jones Industrial Average put on 1.4 percent for the week, to 12,153.68.
