Saudi closes up by 0.5%

INVESTOR CONFIDENCE: Saudi and Oman close high as a result of investor confidence in end of year results.(Getty Images)

Saudi banks and petrochemical companies, which investors are expecting to post strong fourth-quarter results, have led the index to close 0.5 percent higher at 5,048 points.

"The oil price and fourth quarter results are the main drivers of the market," said Abdullah al-Aqeel, equity trader at Samba Financial Group.

SABB rose 4.42 percent, while Saudi Fertizlizers Co gained 3.05 percent.

NYMEX light crude for February delivery traded 1.85 percent higher at $46.44 a barrel.

Oman's main index has posted its largest one-day gain in two months on its first day of trading in the new year, as investors position themselves ahead of fourth-quarter results.

Bank Muscat closed up 9.9 percent, while National Bank of Oman ended 6.85 percent higher.The benchmark rose 4.91 percent to 5,708 points.

"There may be some of the pension funds trying to build some positions. They always liquidate their positions at the end of the year, and build them at the beginning of the year," said Hassan Tawfiq, senior broker at United Securities in Muscat.

Qatar's benchmark has ended 0.72 percent higher at 6,935 points as investors buy into companies they expect will post strong fourth-quarter earnings. Industries Qatar rose 0.89 percent, while Qatar Islamic Bank added 1.33 percent.

Mohamed Abu Ghosh, an analyst at Qatar's Ahli Bank, said the Doha bourse faced uncertain times.

"It seems (Qatar's) good performance at the end of 2008 may have been due to investors wanting to end the year at a higher level...we don't know if this good performance will continue into early 2009," he said.

"It's expected that end-of-year results, cash dividends and so on will affect the market in the first quarter."

However, Kuwait's benchmark closed more than 2 percent lower after a lack of clarity over a government fund intended to shore up the ailing bourse hits investor sentiment.

The benchmark lost 2.21 percent to 7,610 points. Mobile Telecommunications Co, Kuwait's largest company by market capitalisation, plummetted 5.95 percent, while National Bank of Kuwait lost 8.47 percent.

"There was some hope that the multi-billion-dollar fund announced by the Kuwait Investment Authority (KIA) would help the market but until today we haven't got a clear statement on the plan of this fund...this lack of visibility is affecting sentiment," said Rami Sidani, head of investment for MENA at Schroders.

In November, Kuwait asked its sovereign wealth fund KIA to set up a fund to shore up its ailing bourse. The fund began operations 10 days ago.

Separately, Zain's chief executive said he expected net profit to rise by more than 30 percent in 2009, in remarks published on Sunday.

Bahrain's index shed 0.69 percent, closing at 1,791 points.

Bourses in the UAE will be closed on Jan. 4 following the death of the ruler of the emirate Umm al-Quwain. Trading will resume on Jan. 5. (Reuters)

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