MARKETS

Saudi stocks jump on oil supply return, interest rates cut

Saudi Arabia's benchmark, the Tadawul All Share Index, jumped on Thursday after news of oil supply returns. (File photo: AFP)

Saudi Arabian stocks rose on Thursday after the Kingdom said that oil supply had resumed, and production lost in Saturday’s attacks on Aramco’s key facilities would be restored by September-end.

The Saudi benchmark Tadawul All Share Index (TASI) jumped 1.35 percent by end of trading, wrapping up the week on a positive note.

On Wednesday, the Kingdom’s Minister of Finance Mohammed al-Jadaan said the attacks would have no impact on government revenues.

“Oil markets revised their risk premium on Monday– that shows the global oil market is confident in the capability of Aramco to recover,” Mazen al-Sudairi, head of research at Al Rajhi Capital told Al Arabiya English.

In gradual disclosures over the past two days, petrochemical firms – which had been the most impacted by the attacks – said that their feedstock supplies from Aramco had been partially revived.

National Petrochemical Co. (Petrochem) rose 1.95 percent towards end of trading. Saudi Basic Industries Corp. (SABIC), the largest petrochemical producer in the Middle East, jumped two percent. Both petrochemical firms are included on the materials index which jumped 1.92 percent.

Elsewhere, shares of Saudi banks also rose on Thursday, with the banking index up 1.17 percent to. Heavyweight National Commercial Bank rose 0.99 percent, while Riyad Bank jumped 0.95 percent.

The Saudi Arabian Monetary Agency, the Kingdom’s central bank, lowered its key interest rates, in line with the US Federal Reserve’s decision to lower its rates on Wednesday.

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Last Update: Thursday, 19 September 2019 KSA 17:06 - GMT 14:06
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