Saudi index climbs to 26-week high on back of telecoms, petro

Saudi Arabia's index ended slightly higher as gains in petrochemicals and telecoms outweighed bank declines.

The benchmark climbed 0.1 percent to 6,026 points, a fresh 26-week high.

Saudi Basic Industries Corp (SABIC) advanced 3.1 percent, while Saudi International Petrochemical Co (Sipchem) and Saudi Telecommunications Co both added 2.4 percent.

Al Rajhi Bank fell one percent.

"Oil's steady path back towards $60 is proving a major catalyst for strength here, given its rise is from speculation on a slight (economic) recovery soon," said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.

"Now that investors have a partial recovery story to trade around rather than a meltdown scenario, growth plays are being focused upon."
Abu Dhabi's benchmark ended higher for a fifth straight session, buoyed by resurgent banking and property stocks. The index climbs 0.9 percent to 2,644 points.

First Gulf Bank reversed early losses to rise 4.9 percent, while Union National Bank climbed 5.2 percent. Aldar Properties and Sorouh Real Estate added 3.6 and 2.5 percent respectively.

Dubai index closed higher for a sixth session in eight as real estate, construction and transport stocks lead gainers.

The measure rose two percent to 1,676 points.

Market bellwether Emaar Properties climbed 4.4 percent, while Arabtec added eight percent after announcing it was part of a joint venture awarded a AED1.6bn ($435.6m) contract in Abu Dhabi.

"A lot of fund managers are rushing in to buy the pivotal stocks, which are seeing some very big movements," said Sunil Dhall, vice-president at Gulf Baader Capital Markets in Muscat.

Dubai Financial Market rose 3.7 percent and Air Arabia climbed 3.2 percent after announcing a 32 percent rise in first-quarter profit.

Shuaa Capital was unchanged despite announcing a $54m net loss in the first quarter.

"Shuaa's share price is already bombed out and from a price to book value perspective it's very cheap so I doubt there will be much downside from these results," said Ali Khan, head of cash-equity trading at Dubai-based Arqaam Capital.

"Egypt is seeing rising interest in brokerage stocks because of the increase in volumes and this could spill over into the likes of Shuaa."
Industries Qatar surged 7.9 percent on rising oil prices and a strong performance by Saudi Arabia's petrochemical stocks on Saturday.

Oil prices were near to a six-month high of $58 a barrel, up about 70 percent from February's low of $34.

Investment company Masraf Al Rayan jumped 9.1 percent to take its gains to 21 percent over the past four sessions.

"If you compare share price performance since the Qatar index started rallying again, some stocks went up 20-30 percent while al Rayan had hardly moved and so it's playing catch-up," added Jaouni.

The Qatar benchmark rose 4.1 percent to 6,572 points.

Muscat's index ended at a 17-week closing high as banks soared.

Bank Muscat climbed 2.9 percent and National Bank of Oman surged 6.4 percent.

Oman Telecommunications Co (Omantel) and Renaissance Services Co added 1.5 percent and 3.9 percent respectively.

Both are due to announce their first-quarter results this week.

"These two stocks have moved to prices beyond even the best expectations for their results and so they should see some selling once the numbers are out," said Sunil Dhall, vice-president at Gulf Baader Capital Markets.

The index climbs 2.7 percent to 5,615, its seventh advance in eight sessions. Volumes hit a three-week high.

Banks and financial firms advanced to lift the Kuwait index as investors bought stocks on an improving outlook for the regional and global economies.

"Across the region, markets are doing very well and that should continue today and the markets should hold up tomorrow as well," said Shahid Hameed, Global Investment House head of asset management for the Gulf region.

"They're taking their cue from U.S. stocks, which are the beacon for global markets, not just for the Middle East, but Asia and Europe as well."

The Kuwait index climbed 0.3 percent to 7,775 points.

Kuwait Finance House added 3.5 percent, while Gulf Finance House rose 2.7 percent on heavy volumes. National Bank of Kuwait climbed 1.7 percent.

"GFH has been one of the most heavily traded stocks for the past couple of weeks, there's nothing new on the stock, but like a lot of financials it was oversold and so buying is now returning as the global economic outlook improves," said Hameed.  (Reuters)

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