- Mainly due to positive news from the government’s payment plan to the private sector
- Contractor Al Khodari was the top gainer after 15 minutes of trade
- Petrochemical and banking shares remained robust
Stock markets in the Gulf edged higher on Tuesday with Saudi Arabian shares heading for a fourth day of uninterrupted gains on positive news from the government’s payment plan to the private sector.
Riyadh’s general market index rose 0.5 per cent with contractor Al Khodari, which works extensively on public financed projects, the top gainer after 15 minutes of trade, leaping 6.8 per cent, after the government economic body said it was looking at making payments to the private sector before the end of December.
Although the amount was not stated, the Council of Economic and Development Affairs said in a state news statement that it had also cancelled projects valued at up to SAR1 trillion ($266.7 billion).
Pharma and banking gain
Saudi Pharmaceutical Industries, the only listed drug producer, gained 2.5 per cent, in a second day of heavy trade after the energy minister said on Sunday that the kingdom plans to develop automotive, pharmaceutical and solar industries.
Petrochemical shares remained robust as Brent oil stalled around $46 a barrel with top producer Saudi Basic Industries adding 0.3 percent.
Banking shares, which have been leading the market higher since the government’s successful $17.5 billion international bond sale last month, were also strong with all but one of the 12 listed lenders advancing. Saudi British Bank was up 1.8 per cent.