Reuters reported that global stock markets surged almost 2.0%and commodity prices rallied yesterday after US legislators struck a deal to halt a round of automatic fiscal tightening that threatened to push the world's largest economy into recession.
Oil prices rose to near 11 week highs and Saudi stocks extended gains from Tuesday's session,boosted by property and petrochemical stocks.
Mr Basil Al-Ghalayini CEO of BMG Financial Group said that''Obviously,a lot of investors around the world,Saudis included,have been watching carefully the critical debate over the fiscal cliff and were relieved with the final verdict.''
Saudi Basic Industries Corporation rose the most in three weeks.The leading petrochemical stock rose 1.4%.
Mr Tamer El Zayat senior economist at the National Commercial Bank said that''The recently released historical budget coupled by the buildup to year end dividends'announcements have ostensibly improved the trading activity across the board.''
Mr El Zayat said that''Yet,I do believe that averting the US's fiscal cliff was the biggest driver behind breaking above the 6900 mark,given the positive correlation between the Saudi bourse and the global markets.''
Brent February crude was up 75%at USD 111.86 a barrel at 609 GMT,back above the 100 day moving average of USD 111.28.The contract reached USD 112.90,its highest point since October.
