Tadawul rises on EU pact

Following a rally by global stocks on the last day of the week on Friday, the Saudi stock market jumped nearly two percent yesterday on optimism that an accord among European leaders on banks will help contain the region’s debt crisis.

The Tadawul All-Share Index (TASI) while reflecting a large intra-day spike at 6,730.33 points earlier added 124.28 points or 1.89 percent to close the day in the green territory at 6,709.91 points.

“The bounce in the TASI today (Saturday) was primarily in response to the euro zone summit. The summit went further than most analysts had expected in tackling the economic problems in the region,” Paul Gamble, chief economist and head of research at Jadwa Investment, said.

“Global markets responded positively on Friday and oil prices jumped. In addition, the deal for National Shipping Company of Saudi Arabia (Bahri) to buy Saudi Aramco unit Vela, was another positive factor for the market,” Gamble added.

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