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Oil, JP Morgan relief kicks Tadawul market up

The Saudi Arabian equity measure Tadawul All-Share Index closed Saturday trading 0.62% higher at 6,701.09 points. Increasing signs of a soft-landing of the Chinese economy triggered a strong rebound in oil prices (up 1.50% near a one-month high at around $87.50 per barrel (U. S. crude) which helped to improve investors' sentiment in Riyadh. The Tadawul bourse also received backwind from the U. S. after JP Morgan reported Friday a lower-than-expected trading loss and a higher-than-expected earnings for the second quarter. Saudi Arabia's market bellwether Sabic, the world's largest petrochems producer fell 0.60% to SR86.75. Takaful operator Salama gained the most, closing up 10% at SR41.80. Saudi Cement Co. added 0.30% to hit SR89.25. Earlier in the day, Saudi Cement said that its net profit for the second quarter hit SR290.2m , representing a year-on-year increase of 35.7%, and a 10.9% decrease quarter-on-quarter. The firm said that "The reason for the increase in net profits for the second quarter and six months in comparison with corresponding periods of previous year is rising local demand for cement and clinker. The decrease in second quarter net profits in comparison with the previous quarter is due to decline in sales."