RIYADH — Saudi shares closed 2.4 percent higher Saturday with gains in all sectors after oil prices rose Friday. The all-share ended at 6,688 points on petrochemcial stocks. US crude oil prices had risen 84 cents to settle at $88.91 a barrel on Friday, as supply concerns stemming from unrest in the Middle East offset economic worries. Petrochemical giant Saudi Basic Industries Corporation (Sabic) closed 2 percent higher and Saudi Fertilizers Company (Safco) added 3.2 percent. The petrochemcial index ended 2.4 per cent higher at 5,696 points, while banking index too closed higher, gaining 2.6 percent to 14,765 points, lifted by a 2.7 percent gain in heavyweight Al Rajhi Bank. Earlier in the day too, shares opened higher with gains. The all-share added 1.6 per cent to hit 6,642 points in early trading and the petrochemical index added 2 per cent to 5,681 points. Meanwhile, US stocks managed gains for a second straight week, as investors clung to a blind faith that politicians will resolve the looming fiscal cliff crunch. The pending threat of higher capital gains and dividend taxes next year, whatever the resolution of the negotiations between Democrats and Republicans, failed to dim sentiment. The broad-based S&P 500 managed a 0.5 percent gain for the week, to end at 1,416.18. The Dow Jones Industrial Average of 30 blue chips gained 0.12 percent, to 13,025.58, while the Nasdaq Composite put on 1.46 percent, ending the week at 3,010.24. Although business community warns Congress and the White House to reach a deal for averting the economy-crunching spending cuts and tax hikes of the so-called fiscal cliff, investors did not appear too worried. — SG/Agencies
