Saudi Arabian shares rose on the week's first day of trading, led by Saudi Basic Industries Corp (SABIC) and lender Al-Rajhi Bank, after stocks in the US and Europe gained for a second week and oil reached a three-week high. SABIC, the world's largest chemicals maker by market value, climbed 7.4 percent. Al-Rajhi led bank stocks higher, gaining as much as 3.1 percent. Saudi Telecom Co, the Arab world's largest, added as much as 1.9 percent. The Tadawul All Share Index rose 2.8 percent to 5,828.56 points, bringing its gain this year to 21 percent. It slumped more than 50 percent in 2008 as the price of oil, the country's biggest export earner, declined. US stocks rose this week, completing the Dow Jones Industrial Average's best two-week rally since 2000, and European stocks gained for a second week. The US and European benchmarks and oil gained more than 11 percent since July 10. SABIC, added SR4.75 to SR68.75 at the close. Al-Rajhi Bank, Saudi Arabia's largest lender by market value, climbed SR2 to SR67. Saudi Telecom added SR1 to SR53. Gulf stock markets extended gains last week as investors appeared upbeat over the half-year corporate results, rising oil prices and the positive mood that prevailed at Wall Street and other global markets, financial analysts said Friday. Saudi shares rallied for the second week in a row mainly in response to half-year results of the banking, petrochemical and telecom sectors as well as to climbing oil prices. The total profits of 91 Saudi companies reached 7.5 billion dollars in the first half of the year, enhancing expectations of a sustained recovery. TASI gained 0.7 percent last week, closing at 5,670.52 points.
