Saudi Arabian Shares Climb as U.S Retail Sales Data Ease Recession Concern

Saudi Arabian shares rallied for a second day, after U.S. retail sales data eased concern the world’s biggest economy is headed for a recession.

Saudi Basic Industries Corp. (SABIC), the world’s biggest petrochemicals maker, and Al Rajhi Bank (RJHI), the kingdom’s largest publicly traded lender by assets, paced the gains.

The 147-company Tadawul All Share Index (SASEIDX) rose 1.8 percent, to 6,147.45 at 12:03 p.m. in Riyadh, the highest level since Aug. 6, extending its two-day gains to 2.3 percent. The gauge lost 6 percent in the past week, the steepest decline since the week ending March 2, after the U.S.’s credit rating was downgraded by Standard & Poor’s.

A U.S. report yesterday showed retail sales climbed 0.5 percent in July, matching the median forecast of 81 economists surveyed by Bloomberg News. The S&P 500 rallied 5.2 percent in the final two days of the week, its biggest back-to-back gain since March 2009. (Bloomberg)