Saudi stocks at 4-mo. high

JEDDAH — Saudi Arabia's stock market posted its biggest daily gain in four months on Monday as oil prices surged, while shares of Dubai's property developers rose before a major exhibition for the industry this week. Stock benchmark Tadawul All Share Index rose 1.7 percent to 6,204 points, and trading volume grew by more than half, as Brent crude futures jumped almost 5 percent before a news conference at which Saudi Arabia and Russia said they would cooperate in oil markets. But oil's surge was enough to boost Saudi petrochemical shares, with bellwether Saudi Basic Industries gaining 2.7 percent. Also aiding sentiment was a purchasing managers' survey that showed growth in Saudi Arabia's non-oil private sector hit a 12-month high in August, suggesting the economy may be stabilizing after a slowdown driven by low oil prices and government austerity measures. The positive mood spilled into other sectors. Saudi British Bank jumped 4.8 percent to SR19.80. "The market seems to be bouncing from 6,000 points, supported by developments in the oil market. Over the last several weeks, the market has been pricing in negative economic expectations, and the recovery in oil is a nice positive surprise," said Mohammad Al-Shammasi, chief investment officer at Riyadh-based Derayah Financial.— SG/Reuters