Saudi Arabian shares rose the most in a month, after U.S. and European markets advanced and oil prices rallied on a pledge by Fed Chairman Ben S. Bernanke to maintain the U.S. economic recovery.

Saudi Basic Industries Corp., the world’s largest petrochemicals maker, known as Sabic, advanced to the highest since Aug. 23 after oil prices rose by $1.7 a barrel in the past week. The Tadawul All Share Index gauge rose as much as 1.2 percent, the most since July 24, to 6,071.53, at 11: 41 a.m. in Riyadh. The gauge has lost 3.6 percent since the start of August.
“The market is reacting positively to a higher close for oil over the weekend,” said Anas Kassem, an investment analyst at Ajeej Capital in Riyadh, “in addition to Bernanke’s speech Friday which helped western markets bounce back at the end of a difficult week.”
U.S, European and emerging-market stocks rose yesterday as U.S. Federal Reserve Chairman Bernanke pledged to safeguard the recovery of the world’s biggest economy. The Dow Jones Industrial Average surged 1.7 percent, the Stoxx 600 gained 0.6 percent and the MSCI Emerging Markets Index advanced 0.4 percent.
Crude oil surged 2.5 percent, the most since Aug. 2, settling at $75.17 a barrel on the New York Mercantile Exchange. Futures gained 2.3 percent this week. Saudi Arabia holds one- fifth of the world’s proven oil reserves.
Sabic soared as much as 2.4 percent, the most in four weeks, to 85.25 riyals. Al Rajhi Bank, the kingdom’s biggest publicly traded lender by market value, rose as much as 1.3 percent, the most since Aug. 15. Etihad Etisalat Co., the second-largest mobile-phone operator, rose 2.9 percent, the most in three weeks, to 52.75 riyals.
As of 12:47 p.m. almost 29 million shares, or about 80 percent below this year’s daily average, were traded on the 18th day of Ramadan, the Islamic month when Muslims fast from sunrise to sunset and business slows.
Saudi Arabia’s index is the only Persian Gulf Arab benchmark tracked by Bloomberg that trades on a Saturday.
(Source: Bloomberg)