(MENAFN - Arab News) The Saudi stock market rebounded yesterday as the index recorded its largest intra-day increase since the start of 2012.
The Tadawul All-Share Index jumped 233.83 points or 3.21 percent to close at 7,511.72, as Investor participation remained healthy with more than 674.5 million shares changed hands yesterday.
Bellwether Saudi Basic Industries Corp. (SABIC) made its largest daily gain in nearly 11 months, as its stock closed 4.34 percent higher at SR102.25 - its largest gain since March 2011.
"The market responded favorably to SABIC'S first quarter results. It's not entirely clear whether the recent correction has now run its course, but we think the TASI is reasonably positioned for slow and steady gains," Paul Gamble, chief economist and head of research at Jadwa Investment, said after the market closure yesterday.
Faisal Alsayrafi, president of Financial Transaction House (FTH), told Arab News: "The ample available liquidity in the market is one of the reasons sending market higher." He said there was also heavy trading in certain sectors.
The stock market turnover was SR12.74 billion yesterday.
Sami A. Al-Nwaisir, chairman of the board of ALSAMI Holding Group, said: "The market is still very attractive as far as P/E and dividend yield, so there will be many who will be encouraged to participate in the market."
He said the market has more possibilities to go upward than going downward or staying sideways.
"I am optimistic that the market will resume its power again and this power will continue for rest of the year," Al-Nwaisir added.
Commenting on Tadawul's solid performance yesterday, Jarmo T. Kotilaine, chief economist at the National Commercial Bank, said: "This seems to be indicative of the kind of zig-zag we get in the face of a mixed international newsflow. We have had slightly better news in terms of German confidence data and the monetary easing move by the Reserve Bank of India. Thus, the focus has for now shifted from the more negative narrative around Europe, etc. But, generally, this seems like a situation where the market is looking for a direction and more volatility remains likely in the days ahead."
Farouk Miah, head of equity research at NCB Capital, said: "The key local catalyst today was stronger than the expected results from SABIC. Other companies such as Mobily also posted strong results. This combined with easing worries on the European debt situation, as well as the recent sell-off that had left several stocks attractively priced to lead to the very strong performance today."