World Economy

Saudi Stocks Rise

Saudi Stocks RiseSaudi Stocks Rise

Saudi Arabia’s benchmark stock index sustained its upward trend for the second consecutive week, adding more than 300 points further, Arab News reported. Oil price stability is the main reason of market surge. Another sound reason may be the coming direct foreign investment, which will enable the market to be more liquid. Perhaps, investors react positively the reduction of liquidity risk. Saudi Arabia is going to open its $532 billion stock market to direct foreign investment during mid June, allowing qualified foreign institutions to buy shares, the Capital Market Authority said. However, except one dip during the week, the Tadawul index continued pacing its way higher throughout the session to close in the green at 9,251.19 points, up 3.36%, from its previous weekend close at 8,950.11 points. The index touched an intra-week high of 9,289.92 and low of 8,940.88 levels, showing a trading range of 349 points last week.