This Year on Aramco, Oil Outlook, Saudi Stocks Up Most

In slightly more than a year after the pricing of Saudi Aramco’s initial public offering and amid hopes of higher oil prices, Saudi Arabia’s main equity index has advanced the most.

Since October 2018, the Tadawul All Share Index rose 2.4% on Sunday, the most for a session.   after selling shares at 32 riyals ($8.53) each from the world’s biggest IPO, the kingdom raised $25.6 billion. That was the top end of the range and values the energy company at $1.7 trillion. It received total bids of $119 billion. Aramco shares will start trading in Riyadh on Wednesday.

Saudi Arabia’s main index advanced the most since Oct. 2018. On Friday, Saudi Arabia said that it will cut oil supply by more than what was agreed with fellow OPEC+ members, as it guns for a $2 trillion valuation for Aramco. following the announcement, Oil prices climbed.

“Saudis are giving thumbs up to Aramco,” said Joice Mathew, the head of equity research at United Securities in Muscat. “The OPEC+ deal puts a medium-term floor to the oil prices, so now the stage is set for a positive opening for Aramco.”

The kingdom’s two biggest lenders, Al Rajhi Bank and National Commercial Bank, climbed 1.6% and 3.1%, respectively. They contributed the most to the index’s positive performance.