JEDDAH – Saudi stocks rose to the highest since 2008 after Dubai said it would support the restructuring of state-owned Dubai World with $9.5 billion.
The Tadawul All Share Index increased 0.66 percent to 6,801.64 Saturday closing, rising for a third day – the highest since October 2008. Saudi Basic Industries Corp. and Al Rajhi Bank led the gains.
“This is just the impact of Dubai, which is reinforcing healthy sentiment at the moment,” Paul Gamble, head of research at Riyadh-based Jadwa Investment, said.
The additional funds for Dubai World double to $20 billion the amount the government paid to the emirate’s holding company. Dubai World said in November it would seek to delay repaying debt until May, sparking a plunge in developing-nation stocks and increasing the cost to protect against a default by Dubai.
Saudi Basic Industries, the world’s largest petrochemical maker, climbed 0.8 percent to SR98.75. Al Rajhi, the biggest bank in the Kingdom by market value, gained 0.6 percent to SR82.7. – SG/Agencies
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