Saudi market rebounds slightly, SABIC static
The Saudi Arabian Tadawul All-Share Index gained 0.42 per cent to hit 9,864.68 points on Sunday, June 1.
Market bellwether SABIC added 0.05 per cent, closing at SAR116. Saudi Kayan Petrochemical Company fell by 0.47 per cent to SAR16.85. Earlier in the day, Citigroup said Saudi crude production falls, but supported by exports to the US, despite surging US domestic production. In addition, over 300,000 jobs have become available to Saudi nationals owing to the nationalisation program in the past year. The two factors together mean employment among Saudi youth is likely to be rising strongly, bolstering domestic demand. This will translate into rising prices in the kingdom. “Given the April number was close to our xpectations, we still expect full-year inflation to come in at 3.5 per cent (the same as 2013), with inflation likely to pick up in 2015 to around 4 per cent.”