SABIC's $1bn deal fails to boost Tadawul

Saudi Basic Industries Corp (SABIC) slid as investors booked profits from Monday's surge, weighing on Saudi Arabia's index, which declined for the second session in three.

SABIC fell 1.7 percent. It rose 6.1 percent the previous day after it said it agreed to set up a $1 billion joint venture with Japan's Mitsubishi Rayon.

"The joint venture gave the stock a boost," said Youssef Kassantini, head of discretionary portfolio management at Rasmala Investment Saudi.

Al Rajhi Bank fell 1.1 percent and SABB dropped 2.4 percent. The index slipped 0.3 percent to 5,870 points.

"For the next six weeks to two months, the index should move between the 5,400 points, which is the 200 moving average, and 6,140 points, which is the high for this year," added Kassantini.

Aabar Investments was the main gainer on Abu Dhabi's index after the firm said it was setting up vehicle and engine manufacturing plants in Algeria with five German firms, including affiliate Daimler.

Aabar climbed 5.2 percent to its highest close since November 5 last year.

Aldar Properties and Sorouh Real Estate climbed 3.1 and 2.6 percent respectively. Sorouh appointed a new chief financial officer on Tuesday.

Abu Dhabi's index climbed 0.6 percent to 2,854 points.

Emaar Properties led Dubai's index to an eight-week high, extending gains since writing off a US unit on July 30.

Emaar climbed 4 percent to AED3.35, its highest finish since June 24, the penultimate day's trading before it announced plans to merge with three units of Dubai Holding on June 26.

Emaar has gained 21.2 percent since it reported a second quarter loss of $351m as it wrote of the value of bankrupt US unit John Laing Homes.

Union Properties jumped 6.3 percent as investors awaited the firm's quarterly earnings.

Qatar's index hit an eight-week closing high as banks and petrochemicals advanced.

Industries Qatar climbed 1.6 percent and Qatar Islamic Bank and Commercial Bank of Qatar rose 3.7 and 2.4 percent respectively. The benchmark climbed 1.9 percent to 7,103 points, its highest finish since June 16.

Bahrain's measure rose 0.5 percent to 1,532 points, a four-week high.

Zain surged to reach a 10-month closing high, lifting Kuwait's index after the telecoms firm said it will hold an extraordinary annual meeting on August 31.

A trader said there was speculation in the market that the meeting could pave the way for a foreign firm to take a significant stake in the firm.

This follows newspapers' reports earlier this week saying key Zain shareholders were in talks with an unidentified Asian group to sell more than 40 percent of the firm.

Zain climbed 7.8 percent to 1.38 dinars, its highest finish since October 16.

Kuwait Finance House and Agility added 1.6 and 3.2 percent respectively.

The index rose 1.8 percent to 7,909 points, its highest close since July 5.

Bank Muscat hit a seven-month closing high, lifting Oman's index to its highest close since December 1 as rising crude prices bolstered sentiment.

"If oil is doing well, the market does well," says Syed Quadry, vice-president of business development at Amwal Investment in Muscat.

"The first-half results were pretty decent and the economy seems to be doing well, so more investors are buying stocks."

Bank Muscat climbed 3 percent. Oman Cement rose 2.5 percent, taking its gains to 13.3 percent since July 27 when it reported second-quarter profit had more than doubled, beating analysts' forecasts.

The index climbed 0.8 percent to 6,173 points, its seventh rise in eight sessions as volumes hit a three-week high. (Reuters)

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