Gains in petrochemical and mining stocks outweighed declining bank and telecoms shares as Saudi Arabia's benchmark Tadawul All Share Index (TASI) edged 0.25 percent higher to 6,332,45 points, its fifth gain in six sessions. Oil prices touched $81 on Monday, striking levels last seen in May, with sentiment boosted by soaring global stock markets, strong bank results and solid US economic data. New York's main contract, light sweet crude for delivery in September, finished the day at $81.34, up $2.39 from the last session. London's Brent North Sea crude for September leapt to $80.82, up $2.64 from Friday. Saudi Basic Industries Corp (SABIC), the Arab world's largest listed company, climbed 1.7 percent, and Saudi Kayan Petrochemicals Co rose 0.6 percent. The petrochemicals index is up 6.1 percent since July 4, while oil has climbed 11 percent over the same period. “Petchems stocks have gained since forming a floor at the start of July, so may be the subject of some profit-taking in the coming days,” said Hesham Tuffaha, Bakheet Investment Group head of research. Etihad Etisalat (Mobily) and Saudi Telecom Co fell 1.8 and 0.8 percent respectively, a day after sources said the Saudi regulator was looking to ban certain Blackberry services. Samba Financial Group dropped 2 percent and Riyad Bank lost 1 percent, but State-owned Saudi Arabian Mining Co (Maaden) rose 3.9 percent, extending gains since it reported a second-quarter profit. “Local investors take positions in petrochemical or bank stocks based on the wider economic outlook, it's not so much about specific stock valuations,” added Tuffaha. “There are some gains in some small cap stocks, but this is speculation, not fundamentally driven - the blue chips are very hard to speculate in and remain stable.” Emirates NBD dropped 2.4 percent in thin trade. A week ago, Dubai's largest lender reported a 53 percent decline in second-quarter profit. The index fell 0.05 percent to 1,510 points. “The month-long range remains in place, keeping the index in neutral mode,” Shuaa Capital wrote in a research note. “Until a decisive upside break materialises, there will be no reason to bet on sustainable upside.” In Abu Dhabi, telecoms stocks were mixed. Abu Dhabi's index edged up 0.06 percent to 2,537 points.
