Rajhi leads Saudi morning jump, other markets firm

RIYADH (Reuters) – Saudi Arabia’s stock market jumped in early Sunday trade on positive investor sentiment, higher oil prices and solid gains by blue chips, led by Al Rajhi Bank which announced a capital increase, while other markets rose slightly.

Oil rose nearly 2 percent on Friday after proposed trade talks between the United States and China eased some fears about a global economic slowdown.

The Saudi index <.TASI>, the region’s biggest, jumped 1.2 percent to almost a three-week high. Out of 165 traded stocks, 112 advanced and 35 declined.

Al Rajhi <1120.SE>, the kingdom’s second-largest lender by assets, jumped 5.4 percent amid heavy trade after it announced plans to increase capital to 25 billion riyals ($6.7 billion) from 16.25 billion riyals through distributing 7 bonus shares for every 13 shares owned.

It added in a bourse filing that the increase aims to support the bank’s resources, what will contribute to good growth ratios in the future.

Petrochemical giant Sabic <2010.SE> rose 0.7 percent, Samba Financial Group <1090.SE> added 1.1 percent and Saudi Kayan <2350.SE> rose 2.2 percent.

Elsewhere in the region, the Qatar index <.QSI> rose 0.3 percent as Qatar National Bank <QNBK.QA> and Qatar Islamic Bank <QISB.QA> added 0.7 percent each.

The Dubai index <.DFMGI> rose 0.4 percent. Dubai Islamic Bank <DISB.DU> rose 0.6 percent and property developer DAMAC Properties <DAMAC.DU> jumped 2.6 percent.

Abu Dhabi’s index <.ADI> added 0.8 percent, with most traded stocks advancing.

First Abu Dhabi Bank <FAB.AD> gained 1.4 percent and Dana Gas <DANA.AD> jumped 4.2 percent.

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