-- Saudi Exchange-traded shares closed out the week higher as the improving business optimism in Saudi Arabia pushed the Tadawul All Share Index to 0.75% in the green on Thursday.
The kingdom's business confidence index in April increased to 54.5, up from 52.1 in March, with the separate confidence indices for the industry, construction, and services also rising during the reporting period, according to a report from the General Authority for Statistics.
Also boosting sentiment is the prospect of the US and Iran inching closer to the end of their conflict. A Pakistani source said that both sides are working on a temporary deal that would stabilize the Strait of Hormuz, as well as stop the conflict from restarting, Reuters reported.
"Reports of a US-Iran peace deal are gaining credibility, with Pakistan's foreign ministry stating it expects a resolution 'very soon' and Washington anticipating an Iranian response within 48 hours. Even if a deal is struck, Rystad Energy cautions that the consequences for physical oil markets will be slower and more conditional than futures prices are currently pricing in," Rystad Energy said in a note. "This is not a resolution, it is a structured pause, a distinction that matters enormously for physical barrels."
Back at home, another wave of earnings reports came in, with Saudi Public Transport Co. (SASE:4040), d/b/a Saptco, and Filling and Packing Materials Manufacturing (SASE:2180), d/b/a Fipco, swinging to a profit in the three months ended March 31. Middle East Paper Co. (SASE:1202), d/b/a Mepco, however, turned to a loss for the March quarter.
Saptco and Mepco closed 10% and 0.28% in the red, respectively. Fipco closed 2% higher.
Meanwhile, National Co. for Learning and Education (SASE:4291), or NCLE, shares edged down 0.75% as it secured long-and short-term Sharia-compliant credit facilities totaling 230 million Saudi riyals. The funding will be used for its expansion plans.