JEDDAH: Saudi Arabian shares advanced the most Saturday in three weeks as investors bet a larger-than-forecast decline in US jobless claims signaled economic growth is gathering speed in the biggest crude-consuming nation. The Tadawul All Share Index 0.12 percent to close at 6,298.89. Leading the advance were Banque Saudi Fransi, the fourth-largest publicly traded lender in the Kingdom, Samba Financial Group, the No. 2 Saudi bank, and Etihad Etisalat Co., the second- biggest mobile-phone operator. Tadawul has gained 9.6 percent from this year's low in May. “Upbeat news on improving consumer sentiment and declining initial jobless claims out of the US are lifting the Saudi market,” said Asim Bukhtiar, an equity analyst at Riyad Capital. “Employment numbers beat market expectations and point to encouraging ‘Black Friday' sales, which should lift retail stocks.” A report on Nov. 24 showed initial US jobless claims dropped to the lowest level since July 2008, reinforcing sentiment the employment market is healing. Jobless claims declined by 34,000 to 407,000 in the week ended Nov. 20, Labor Department figures showed. Banque Saudi rose as much as 2.3 percent, the most since Oct. 30, to SR45. Samba advanced as much as 1.3 percent to SR58.25. Etihad Etisalat gained as much as 1.4 percent, the most in a week, to SR55. “Saudi banks were oversold last week and investors are returning on attractive valuations despite the overhang of heightened provisioning expected at year-end,” Bukhtiar said. Saudi Basic Industries Corp. (SABIC) was unchanged at SR99.25. Oil prices edged lower Friday as the dollar strengthened due to concerns about Europe's debt crisis and as stock markets fell across the globe. Benchmark oil for January delivery fell 10 cents to settle at $83.76 a barrel on the New York Mercantile Exchange. Prices had dipped below $83 earlier in the session as traders focused on debt woes in Europe. In London, Brent crude dropped 30 cents to $85.80 a barrel on the ICE Futures exchange. China's energy consumption has led growth in global oil demand this year, but investors are worried that recent measures aimed at containing inflation will undermine its economic expansion. The euro, used by 16 European countries, fell to $1.3237 in late New York trading Friday from $1.3368 late Thursday, earlier dipping below $1.32 for the first time since Sept. 21. The British pound dropped to $1.5602 from $1.5760. A stronger dollar makes crude more expensive for investors holding other currencies and usually drives down oil futures.
