(Bloomberg) -- Saudi Arabian shares jumped the most in the
world as the nation’s new king signaled policy continuity in the
Arab World’s biggest economy and the market regulator said plans
to open the exchange to foreigners are on track.
The Tadawul All Share Index climbed 2.6 percent in Riyadh
to close at 8,912.50, the highest level since Dec. 7, and the
most among more than 90 indexes tracked globally by Bloomberg.
Yesterday’s 2.4 percent gain was the most after Venezuela. Saudi
Basic Industries Corp., or Sabic, a petrochemicals producer that
has the second-biggest weighting in the index, contributed most
to today’s gain.
The Tadawul has risen 5.8 percent in the three days it has
traded since the new monarch ascended to the throne following
King Abdullah’s passing on Jan. 23. The Capital Markets
Authority is assessing investor feedback before it approves the
regulations and sets an official date in the first half for
reducing restrictions on direct participation of foreign
investors, CMA Governor Mohammed Al-Sheikh said in Riyadh on
Tuesday.
“This is an extended reaction to the Saudi market being on
track to open its doors to foreigners,” Amer Khan, the head of
asset management at Shuaa Capital PSC, said by e-mail today.
“The positive sentiment has also been supported by the smooth
succession in the kingdom.”
The world’s biggest oil exporter is removing barriers to
one of the most-restricted major stock exchanges as it pursues a
$130 billion spending plan to boost non-energy industries.
Investors from outside the six-nation Gulf Cooperation Council
aren’t allowed to invest directly in stocks and have to get
access to the market through equity swaps and exchange-traded
funds.
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