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European ‘breakthrough’, oil price rally pushes Saudi market up 1.89%

The Tadawul All-Share Index (Tasi) closed Saturday trading 1.89% higher at 6,709.91 points. A whopping 135 out of 154 shares traded advanced, while 13 declined. Market bellwether and petrochems leader Sabic outperformed the gauge, ending up 3.92% at SR92.75. The bourse was lifted by the EU summit from Friday where head of governments agreed on steps to reinforce the banking system and the credit markets, including a EUR120bn growth package. In addition, the spike in oil prices which jumped almost 8% ahead of the EU-imposed oil export embargo against Iran, effective from July 1, triggered the bulls' run in Riyadh. In he first six months of 2012, the Tasi gained 4.55%. Nevertheless, the Saudi market lost much of its advances it achieved in the first quarter. Riyadh finished Q1 with a plus of 22.10%, the highest profit in the GCC in that period. Most of the profit was erased during May and June when the Eurozone debt crisis and the sharp fall of the oil price weighed on the gauge.