Saudi Arabia's Tadawul All Share Index (TASI) rose to a 17-month high on Tuesday as rising oil prices, increased US consumer spending and expectations of improved domestic first-quarter earnings bolstered sentiment. The index jumped 0.66 percent to 6,814.99 points. Most other Gulf markets also advanced, with Qatar edging up to a 24-week closing high and Dubai gaining for a third session in four since the emirate unveiled a restructuring plan for indebted conglomerate Dubai World. Almarai rose 1.9 percent as it formed a joint venture with US food producer Mead Johnson Nutrition Co. Saudi Basic Industries Corp and Samba Financial Group added 1 and 1.7 percent respectively. “Oil is above $82, world stocks are doing well and there is expectation for Saudi first-quarter earnings to beat last year,” said Saleh Al-Onazi, vice-president at Swicorp in Riyadh. “The market should continue to head towards 7,000 points.” World stocks rose as a weak dollar-inspired rally in commodities and evidence of a recovery in US consumption spurred buying in riskier assets. Increase spending bodes well for oil demand, Onazi said, boosting sentiment in top oil exporter Saudi Arabia. “Saudi Arabia's Q1 results will come out from the first week in April, so any profit-taking will be short-lived,” said Haissam Arabi, chief executive at Gulfmena Alternative Investments. “The Saudi market has broken resistance levels and it should outperform on the back of Q1 earnings.” Dubai's index rose 1 percent to 1,850 points, clawing back some of the previous day's losses. “Yesterday we saw some profit taking, which was only natural after major rallies, but this is creating opportunities for investors to reposition ahead of Q1 results,” added Arabi. Arabtec surged 6.7 percent to a 12-week high, extending gains after the builder won contracts worth $370 million in Abu Dhabi and Qatar. “There's a growing belief among investors that markets are regaining their attractiveness as a source of revenue,” said Mohammed Yasin, Shuaa Securities chief executive. Dubai index rose 1 percent to 1,850 points. Abu Dhabi benchmark slipped 0.2 percent to 2,925 points. Kuwait measure rose 0.2 percent to 7,540 points. Qatar index climbed 0.3 percent to 7,465 points.
