Saudi Arabia's stock market rose on Sunday trade on positive investor sentiment, higher oil prices and solid gains by blue chips, led by Al Rajhi Bank which announced a capital increase, while other regional markets also closed higher. Oil rose nearly 2 percent on Friday after proposed trade talks between the United States and China eased some fears about a global economic slowdown.
The Saudi index, the Middle East's biggest, rose 1.3 percent to almost a three-week high. Al Rajhi, the kingdom's second-largest lender by assets, jumped 5.1 percent amid heavy trade after it announced plans to increase capital to 25 billion riyals ($6.7 billion) from 16.25 billion riyals through distributing 7 bonus shares for every 13 shares owned.
"US market closed 700 points higher on Friday leaving a positive sentiment across the board. The announcement by Rajhi bank helped maintain that (momentum) giving the regional markets a push higher," said Marie Salem, director capital markets at FFA Private Bank Dubai. Petrochemical giant Sabic rose 1.4 percent, Saudi Arabian Mining Co. jumped 3.3 percent, and the Gulf's largest dairy company Almarai jumped 5 percent.
Elsewhere in the region, Dubai's index, one of the world's worst-performing stock markets last year, closed 0.2 percent higher as Dubai Islamic Bank added 1.4 percent and Emirates NBD gained 0.6 percent. Developer DAMAC Properties rose 1.3 percent. In Abu Dhabi, the index rose 0.1 percent with First Abu Dhabi Bank up 0.6 percent and Dana Gas gaining 1.7 percent.
The Qatar index was flat at 10,352 points. Qatar National Bank (QNB) closed 0.8 percent higher and Qatar Insurance Co. rose 1.4 percent. Conglomerate Industries Qatar closed down 0.6 percent and Commercial Bank shed 1.2 percent.
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