JEDDAH: Saudi stocks advanced to the highest level in six weeks as investors start the month with expectations companies will post encouraging quarterly earnings and on gains in the petrochemical sector after oil climbed to its highest price since 2008. The 146-member stock benchmark Tadawul All Share Index rose 0.91 percent, the highest level since Feb. 14, to 6,622.65 close Saturday. The petrochemical sector index added 1.5 percentage points as Saudi Basic Industries Corp. (SABIC) closed 0.7 percent higher and Saudi Fertilizers Co. (Safco) climbed 1.2 percent. Etihad Etisalat Co. advanced 2.4 percent to SR52.75, the highest level since Feb. 16. Saudi Telecom Co. (STC) advanced 1 percent to SR38.9 after it submitted a technical offer to the Syrian government for the country's third mobile license. “The market is rallying due to anticipation of good quarterly results especially by the index heavyweights such as petrochemicals,” John Sfakianakis, chief economist at Riyadh-based Banque Saudi Fransi, said. SABIC advanced to SR106, the highest since Jan. 26. The company's exports to Japan have not been affected by the earthquake that devastated northern Japan on March 11, Al Hayat reported, citing Chief Executive Officer Mohamed Al-Mady. “Investors have absorbed regional political news and the focus has shifted to first-quarter earnings season,” said Asim Bukhtiar, an equity analyst at Riyad Capital in Riyadh. Syria is the latest Middle Eastern country to be hit by a wave of uprisings in the region. “The robust oil prices noticed last week are also giving a good boost of confidence for the economy in general and the healthy fiscal situation in particular in light of the recently announced measures by King Abdullah, Custodian of the Two Holy Mosques,” Sfakianakis said. Oil prices jumped Friday, with Brent crude for May rose $1.34 to settle at $118.70 a barrel, the highest close since August 2008 and up $3.11 for the week. It hit a May contract peak of $119.14 in post-settlement trading. Brent's front-month 2-1/2-year high of $119.79 was struck on Feb. 24. Brent has bounced back after falling below $108 in the aftermath of Japan's March 11 earthquake and tsunami. US crude rose $1.22 to settle at $107.94, pushing to $108.47 in post-settlement trading. Both the settlement and the intraday peak were the highest since September 2008. The weekly total US crude trading volume dropped to 2.45 million lots traded.
