Banks lift TASI over 7,000; SABIC at two-year high

Saudi bank stocks on Monday boosted the benchmark Tadawul All Share Index (TASI) 2.4 percent higher to close at 7,047, its highest in two months.  

Trading turnover surged to SAR 4 billion, for the first time in two months.

The bounce comes as the market awaits a decision Tuesday by index compiler MSCI to put Saudi Arabia on review for an upgrade to its emerging market group.

While most sectors were trading in positive territory, banks led the advance as the sector index jumped over 4 percent.

Among banks stocks, Arab National Bank pared early gains to close 4.4 percent higher at SAR 20.96. The lender has proposed a 5.5 percent cash dividend dividend for the first half of 2017, up from the 4.5 percent proposed in the year-ago period.  

Banque Saudi Fransi, which rose to hit a session-high of SAR 29.70, settled slightly lower. Saudi British Bank added 6 percent to SAR 25.50.

Al Rajhi Bank, which saw transactions worth more than SAR 1 billion, rose more than 5 percent to SAR 65.30 while Saudi British Bank climbed 6 percent.

Petrochemicals also surged as the materials sector gained 2 percent. Heavyweight SABIC rose 1.6 percent to SAR 103, its highest close in almost two years.

Sahara Petrochemical gained 6 percent to SAR 13.10.

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