Saudi shares snap 4-day losing streak as oil swells

JEDDAH – Saudi Arabian shares snapped a four-day losing streak Saturday after oil prices gained and Dar Al Arkan Real Estate Development Co. said holders of its $1 billion Islamic bonds will be repaid July 16.

The stock benchmark Tadawul All Share Index rose 0.62 percent, the most since July 3, to 6,701.09 at close.

The price of oil climbed Friday for a third straight day as traders fretted about declines in supply in key areas around the world.

A series of reports this week showed that oil supplies from Iran, the North Sea and the US have declined. Continued decreases would likely squeeze global supplies, while demand is expected to rise to a record of about 90 million barrels per day this year.

Benchmark US crude rose by $1.02 to finish at $87.10 per barrel in New York, while Brent crude increased by 35 cents per barrel to $101.42 per barrel in London.

Dar Al Arkan, which plunged 20 percent last week, advanced the most since March 24.

Dar Al Arkan surged 9.8 percent to SR8.95. The company, Saudi Arabia’s largest publicly traded property developer, said it transferred the money to Deutsche Bank AG and sukuk holders will receive the funds on July 16, according to a regulatory filing today.

Mobile Telecommunications Co. Saudi Arabia, the mobile-phone company known as Zain Saudi, surged 5.2 percent. Zain Saudi jumped as much as 8.9 percent to SR13.5 before trimming gains to close at SR13.05.

US stocks cut off a six-day losing streak Friday, but sustaining the rebound and overcoming broader economic fears will require a solid run of second-quarter earnings reports over the coming week.

A better-than-feared quarter from JPMorgan Chase and a good report from Wells Fargo Friday helped the turnaround, and on 1.5-1.6 percent gains for the day, the major indices were close to where they ended the previous Friday.

The Dow Jones Industrial Average managed to close the week up 4.62 points, or 0.04 percent, at 12,777.09, and the S&P 500 added 0.15 percent to 1,356.78.

The tech-heavy Nasdaq Composite finished 0.98 percent lower, at 2,908.47.

"Globally there is some recovery in oil prices and some of the sentiment from these international events is reflected in today’s activity," said Asim Bukhtiar, a head of research at Riyad Capital. – SG/Agencies