Saudi index ends higher, banks help

Saudi Arabia's benchmark ends higher as banking stocks rebound from Tuesday's that followed a earnings forecast cut by HSBC. Samba Financial Group ends 3.4 per cent higher, Riyad Bank climbs 2.7 per cent and Saudi Hollandi Bank gains 2.2 per cent. The index ends 0.6 per cent higher at 6,001 points. "It's a technical rebound. The banking sector took a beating yesterday following HSBC's report and we are seeing the stocks rebounding now," says Saleh al-Onazi, vice-president of principal investment at Swicorp in Riyadh. "There is some value in Saudi banking stocks. No one can deny that," he says. Index heavyweight Saudi Basic Industries Corp (Sabic) and its affiliate Yanbu National Petrochemicals Co (Yansab) drop 0.6 per cent each. On Tuesday, HSBC cut its 2010 profit-growth estimate on Saudi banks, saying growth momentum had shifted to 2011 from 2010.