Saudi market hits two-month high

STRONG GAINS: Saudi's index finished the day above 10,000 points for the first time in two months. (Getty Images)

Saudi Arabia's main index finished Tuesday above 10,000 points for the first time in almost two months as markets across much of the Gulf ended the day in positive territory.

Kuwait's measure closed up more than 1%, while Dubai, Qatar and Bahrain all made moderate gains. Only Abu Dhabi and Oman lost ground, with Muscat's index falling of a record to its first lower close in four trading days.

Samba Financial Group and SABB bank led gains in Saudi, rallying 6.32% and 7.04% respectively to lift the benchmark 1.84% to 10,089.52 points.

Samba Financial Group had surged almost 26% this month to Monday's close, while and SABB bank has gained more than 21% this month. The index has risen more than 11% this month to Monday's close.

"We have heard many investors talking about the new mortgage rules and thinking they may help the banking sector to rise," Ibrahim Al-Alwan, deputy chief executive at KSB Capital Group, told newswire Reuters.

Saudi Arabia was in the final stages of completing a mortgage law that would allow more Saudis to own property, the Finance Ministry said in January.

Kuwait's main index closed up more than 1%, led by telecom Zain and Global Investment House, which climbed 3.57% and 2.08% respectively.

The benchmark, the Gulf's third-biggest riser this year after Oman and Qatar, added 1.05% to 11,637.80 points. The index has risen more than 15% this year.        

Oman Cement Company helped pull the Muscat index off its record after the firm's first-quarter profit disappointed investors.

Oman Cement plunged 8.19% after first-quarter profit dropped 19% due to a fall in production, dragging down the benchmark 1.35% to 11,218.88 points.

"Oman Cement could see a further correction from here," said Sankar Kailasam, head of research at Gulf Investment Services.

"Demand for cement has been high but Oman Cement has been laggard in terms of building capacity. I do not expect it will do well this year," he said.

The index is the Gulf Arab region's biggest gainer this year, rising almost 26% to Monday's close.

Dubai's main index closed higher for the third time in four trading days, led by Emirates NBD.

The lender, whose Islamic unit more than tripled its first-quarter profit, jumped 4.22%, leading gains on the index, which rose 0.65% to 5,751.73 points.

Abu Dhabi's benchmark, which has risen almost 10% this month, slipped 0.14% to 4,990.78 points with telecom Etisalat pacing the losses.

Etisalat fell 0.68%. The firm's chairman told Reuters on Tuesday that the company could spend up to $4 billion on an acquisition or a licence to enter India.

Qatar's index, which has gained more than 17% this year, ended higher for the seventh time in eight trading days.

Qatar Gas Transport Company (Nakilat) rose 1.51%, leading gains on the index, which advanced 0.6% to 11,294.01 points.
 
Ahli United Bank climbed 0.83%, boosting Bahrain's benchmark 0.2% to 2,849.09 points.

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