JEDDAH – Saudi stocks surged to six-week highs Saturday after US stocks advanced for a second straight week on the Federal Reserve's plan to buy mortgage securities and on higher oil prices. The stock benchmark Tadawul All Share Index gained 0.86 percent to 7,169.86 points at close. It has increased 12 percent this year. Saudi Basic Industries Corp. (Sabic) gained 2.4 percent to SR94.75, highest level since May 30. National Industrialization Co. climbed the most in a week at 1.5 percent to SR33.1. Samba Financial Group (Samba) advanced the most in almost two weeks, adding 1.3 percent to SR47.6. The US “stimulus will be a factor domestically as the S&P 500 reached near five-year highs,” Asim Bukhtiar, head of research at Riyad Capital, said. “We expect positive opening this morning on the heels of strong gains in developed markets over the past two days. Petrochemicals should benefit from $99 crude.” Equities rallied as the Fed said on Sept. 13 that it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month in a third round of quantitative easing as it seeks to boost growth and reduce unemployment. The Standard & Poor's 500 Index added 1.9 percent this week to 1,465.77, extending its two-week rally to 4.2 percent. The index is 6.8 percent away from its all-time high set in October 2007. Oil climbed to the highest level in more than four months as the Fed's plan boosted demand for commodities and stocks. Crude oil for October delivery advanced yesterday 69 cents, or 0.7 percent, to $99 a barrel on the New York Mercantile Exchange, the highest settlement since May 3. Futures touched $100.42 in intraday trading. Prices increased 2.7 percent this week and are up 11 percent from a year ago. Benchmark Brent crude rose $0.78 a barrel. – SG/Agencies
