TASI rebounds as investors snap up bargains

The Saudi bourse on Thursday rebounded from three sessions of declines as investors scooped up bargains.

The Tadawul All Share Index (TASI) closed the week up 0.7 percent to 6,879. However, trading volume stayed low at below SAR 3 billion suggesting that traders lacked confidence in the rebound.

Faisal Hasan, head of investment research at Kamco Research, said in a recent technical note that a break above the tiny resistance level at around 7,000 point would promote 7,175 point.

“… But we still need a jump over 7,350 point to confirm another leg up towards 8,000 point,” he added.

Gains were led by insurance, banks and food sectors. Nadec was the top riser, hitting the higher limit at SAR 26.60. Buruj rose 9 percent while Farm Superstores gained 5 percent.

Blue chip Al Rajhi Bank jumped 1.6 percent to SAR 64. Alinma was 2 percent higher at SAR 14.90.

Petrochemicals supported as oil prices stayed steady. SABIC edged up to SAR 95.75.

Basic Chemical Industries Co. rose over 1 percent. The company plans to build a chlorine derivatives project in Jubail.

In contrast, eXtra extended losses, falling another 4 percent to SAR 34.70. The stock had gained 40 percent earlier.

Write to Brinda Darasha at brinda.d@argaamplus.com