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Saudi stocks hit their highest level in 32 months as confidence rose

SAUDI ARABIA (OBSERVATORY) –┬áSaudi Arabia’s stock market rose to a 32-month high Monday, while analysts said rising oil prices and easing concern after Western strikes on Syria were helping to boost confidence.

The stock index rose 1 percent to close at 8,050 points, surpassing the psychologically important 8,000 threshold for the first time since August 2015.

“This is a combination of positive factors that raise investor sentiment,” said Mohamed Zidan, a market expert at Thinkmarket in Dubai.

“Oil prices are still above $ 70 a barrel, while geopolitical tension after the Western strikes on Saturday eased on Syria,” he said.

He pointed out that all indicators show more flow of funds to the Saudi market, the largest in the Middle East.

Since the beginning of the year, the market index has risen 11.4 percent as the kingdom is ready to launch the local oil giant Aramco for the IPO.

The $ 500 billion market appears to be reacting to the decisions of the Moody’s and Standard & Poor’s ratings agencies to maintain the kingdom’s current rating due to ongoing economic reforms.