Saudi index makes largest gain for 4 weeks

STOCK WATCH: All active stocks advanced on Dubai's DFM. (Getty Images)

Saudi Arabia's index TASI made its largest one-day gain for more than four weeks, ending higher for the first session in three as resurgent oil prices and global equities and well received bank results lifted stocks.

The benchmark climbed 2.4 percent to 5,577 points, with volumes hitting an eight-session high.

Saudi Basic Industries Corp (SABIC) rose 5 percent, Al Rajhi Bank added 4.1 percent and Samba Financial Group climbed 3.6 percent.

"What happened last week was a reflection of declining global markets and falling oil prices, but if U.S. stocks continue to rally, then the Saudi index could reach 6,000 points within the next two weeks," said Hesham Abo Jamee, Bakheet Investment Group head of asset management.

Abu Dhabi's ADI benchmark made its largest one-day gain for a month, ending higher for the first session in three in a region-wide surge in equities as oil prices steadied above the psychologically important $60 mark.

The benchmark rose 1.8 percent to 2,607 points, with volumes hitting a four-session high.

Emirates Telecommunications Corp (Etisalat) climbed two percent, Aldar Properties rose 4 percent and Abu Dhabi Commercial Bank added 3.6 percent.

"US markets started to rally yesterday after analysts said banking results should be better than anticipated, giving investors across the globe an excuse to come back in," said Sanyalaksna Manibhandu, Emaar Saudi Financial Services head of research.

Dubai's index DFM ended higher for the first session in five, making its largest one-day gain since June 14 as most stocks rebound from milestone lows.

The benchmark climbed 3.8 percent to 1,692 points, ending a four-session losing streak that led to Monday's eight-week closing low.

Emaar Properties jumped 8.3 percent and Arabtec surged 11.4 percent after each suffering major declines the day before.

"East Asia markets were up strongly today and that gave Gulf stocks an excuse to move higher, especially with oil prices creeping above $60, but I'm not sure how long this will last," says Sanyalaksna Manibhandu, Emaar Saudi Financial Services head of research. "It will depend on the results season around the world."

Kuwait's index KWSE ended higher, making its largest one-day gain for more than three month as firmer oil prices and resurgent global stocks steady investor sentiment, with individual stock news also helping.

National Bank of Kuwait climbed 3.4 percent after its chief executive said he expects good results for the year, despite a tough operating environment.

Zain rose for the third day since French media giant Vivendi said it was in talks to buy a stake in Zain's African operations. Zain climbed 1.7 percent, taking its gains to 15.7 percent from Sunday's close.

Other banks also prospered. Ahli United Bank climbed 3.1 percent and Boubyan Bank rose 3.9 percent.

Two companies this week received approval to buy stakes in Boubyan.

The index rose 1.9 percent to 7,512 points, its biggest one-day gain since April 5.

Industries Qatar surged to help Qatar's index QSI made its largest one-day gain for six weeks as firmer oil prices buoyed sentiment.

The petrochemicals producer climbed five percent and has been closely correlated to crude, falling 18.6 percent between June 30 and July 13, while oil dropped 14.5 percent over the same period. Crude was up 1.4 percent on Tuesday after hitting an eight-week closing low the previous day.

Commercial Bank of Qatar rose 4.8 percent and Qatar Gas Transport Co (Nakilat) added 3.6 percent as 19 of the benchmark's 20 stocks advanced.

The measure climbed 2.6 percent to 5,882 points, its biggest one-day rise since May 31.

Bahrain's index BAX ended lower for a fourth day, falling 0.8 percent to 1,486 points, a fresh two-year low. (Reuters)

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