RIYADH: The Saudi stock market hits a 32-month high as analysts claim higher oil prices, and easing anxieties helped fuel confidence.
The Tadawul All-Shares Index (TASI) added 1% to close trading on 8,050.30 points, rising above the psychologically important 8,000-point mark for the first time since August 2015.
“It’s a combination of positive factors that pushed investor sentiment higher,” said Mohammed Zidan, market strategist at Thinkmarket in Dubai.
“Oil prices are holding high above $70 a barrel while geopolitical tensions have eased after Saturday’s US strike on Syria,” Zidan said.
He stated that all indications depicted that increased funds were flowing into the Saudi market, the largest in the Arab world, after the global FTSE Russell index last month granted it secondary emerging market status.
Since the very start of the year, TASI has gained 11.4% as the kingdom is preparing to list a part of state energy behemoth Aramco locally.
The market, which has a capitalization close to $500 billion, appeared also to be reacting to decisions by agencies Moody’s and Standard and Poor’s to maintain the kingdom’s ratings mainly due to ongoing economic reforms.