(Bloomberg) -- Saudi Arabian stocks advanced, leading most Arab equity markets higher, after oil capped its best week in almost four years on speculation a falling rig count will curb U.S. production growth.
The Tadawul All Share Index added 1.8 percent to 9,345.32 at the close in Riyadh, the highest close since November. Abu Dhabi’s ADX General Index climbed 0.3 percent and Qatar’s QE Index rose 0.8 percent, gaining for a sixth day. Brent crude, the benchmark for more than half the world’s oil, jumped 9.1 percent last week, bringing gains in the past 10 days to 18 percent, the best two-week rally since 1998.
Oil has rebounded as companies including Statoil ASA, BP Plc and Royal Dutch Shell Plc have reduced investments in response to the market’s collapse and U.S. drillers pulled more rigs off oil fields, according to data from Baker Hughes Inc. The Organization of Petroleum Exporting Countries, of which four out of six Gulf Cooperation Council states are members, has challenged U.S. production growth by maintaining output even amid oil’s lowest prices in more than five years.
“Market sentiment is directly correlated with oil prices and oil prices are in a rebound mode,” Wadah Al Taha, chief investment officer of Dubai-based Al Zarooni Group, said by phone today.

Earnings

Saudi Basic Industries Corp., one of the world’s biggest petrochemicals producers, added 3.1 percent. Saudi Kayan Petrochemical Co. climbed 10 percent, the most since March, 2011, on seven times the stock’s three-month average daily volume.
Saudi Arabian Mining Co. rose 5.3 percent. Shares have gained 13 percent since the company known as Maaden said Jan. 20 it made a profit in the fourth quarter after a loss a year earlier.
“The key drivers of the market of late have been oil prices and the earnings season,” Amer Khan, the head of asset management at Shuaa Capital PSC, said by e-mail today.
Kuwait’s SE Price Index increased 0.8 percent and Oman’s MSM30 Index gained 0.6 percent. Dubai’s DFM General Index added 0.2 percent, while Bahrain’s BB All Share Index advanced 0.2 percent.
Egypt’s EGX 30 Index reversed gains of as much as 0.8 percent to close down 0.1 percent. The central bank effectively brought black market currency trading to a halt last week by ordering a limit on bank dollar deposits, forcing dealers to use the official exchange rate. The country has let the pound slide 6.3 percent this year, making it the Middle East’s worst performer.
Israel’s TA-25 Index retreated was little changed at 1,461.55 at 3:31 p.m. in Tel Aviv. The dual-listed shares of Opko Health Inc. and Nice Systems Ltd. led gainers, with both companies heading for a record close. Perrigo Co. declined 2.6 percent, following a Feb. 6 drop in its New York-traded shares.
To contact the reporter on this story: Arif Sharif in Dubai at asharif2@bloomberg.net
To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net Claudia Maedler