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Bargain hunters enter Riyadh bourse, lift Tasi benchmark above 6,000

Lifted by low valuations and stock market rebounds in Europe, the Tadawul bourse added 0.62% to reach 6,002.09 points, although market bellwether Sabic fell 0.57% to SR87.75. Sanad Insurance & Reinsurance Cooperative Company jumped 10% (limit up), closing at SR19.25. Despite today's market mini rebound, prospects remain tricky. "The Euro zone crisis is hitting the emerging market financial markets hard(...) Analysts are now highlighting that the Euro zone banks are a major source of funding for many companies round the world. If Euro zone banks conserve their capital they may withdraw some of their funding of global companies, thereby creating a more widespread global credit crunch," says Gary Dugan, CIO Private Banking at Dubai-based Emirates NBD. Meanwhile, the risk that Dexia Bank from France and Belgium will collapse increased Wednesday after clients withdrew EUR300m. Dexia Bank owns risky securities, including sovereign bonds from Greece, worth EUR95bn. Also, in Saudi Arabia SABB HSBC Saudi Arabia Purchasing Managers' Index (PMI) for September 2011 slipped to a new low of 54.5 (from 57.9 in August).