Riyadh (AFP) Saudi stocks surged the 10 percent daily maximum allowed only minutes after trading opened following the appointment of a new chief for the Capital Market Authority.
The Tadawul All-Shares Index (TASI) broke the 11,000-point psychological barrier to reach 11,035.48 points, up 9.84 percent on Thursday’s close.
The TASI is still 34 percent below its end-2005 close and down 46.5 percent on its all-time high of 20,634 points set on February 25.
Saudi King Abdullah Friday sacked the head of the Capital Market Authority Jammaz al-Suhaimi after the index dropped to a 14-month low. Suhaimi had been strongly criticized by traders.
He was replaced by Abdulrahman al-Tuwaijiri, who was secretary general of the Supreme Economic Council headed by the king himself.
Other Gulf markets followed suit Saturday.
Dubai Financial Market Index rose 7.4 percent to cruise to just below the 500-point psychological barrier.
Abu Dhabi Securities Market also increased 5.55 percent.
Only Kuwait Stock Exchange dropped slightly by 0.9 percent.
The other Gulf markets of Qatar, Oman and Bahrain are closed on Saturday.
The seven bourses of the oil-rich region have been reeling under a strong correction over the past several months following almost three years of unprecedented increases.