Dubai World bailout sees Saudi shares rise
Tadawul index up 0.7 percent following news of $9.5 billion restructuring plan.
March 27, 2010 5:35 by kippreport
Saudi’s stock exchange closed at its highest level since October 2008, following news that neighboring UAE will pump $9.5 billion into the troubled Dubai World conglomerate.
The Tadawul All Share Index increased 0.7 percent to 6,801.64 on Saturday, with Al Rajhi Bank and Saudi Basic Industries leading the gains.
Analysts put the gains down to “healthy sentiment” following Thursday’s announcement that the UAE government will support Dubai World.
However, the Dubai World debt restructuring plan has left some creditors concerned because of a lack of clarity on the interest payable, according to a report in the Financial Times.