Stock news: Saudi Arabia surges, boosted by stronger oil

Saudi Arabia’s stock market continued its sharp rebound in early trade on Sunday as stronger oil prices lifted shares in the petrochemical sector.

The kingdom’s main stock index jumped 4.2 per cent in the opening minutes and petrochemicals giant Saudi Basic Industries (SABIC) rose 6.5 per cent. The petrochemical sector index added 5.7 per cent.

Other sectors were also strong although lagging behind petrochemicals, for whom stronger oil translates into higher margins. National Commercial Bank, Saudi Arabia’s largest lender, surged 4.2 per cent.

Saudi Arabia’s market had suffered the most from panic selling in the Gulf earlier this month and is still down 12.8 per cent month-to-date.

Elsewhere in the Middle Easr, Egypt’s stock index edged up 0.6 per cent in the opening minutes, with most stocks positive. Property developer Talaat Moustafa Group, up 2.1 per cent, was the main support.

But Edita Food Industries underperformed and dropped 2.9 per cent. Several investment banks, including Goldman Sachs, HSBC, Renaissance Capital and EFG Hermes, have cut the stock to “hold” or “neutral” from “buy” this month after the company published its second-quarter results, showing nearly flat profit in year-on-year terms.