SABIC hits 10-month high to boost Saudi index

STOCKS NEWS: Deyaar fell 3.7%. (Getty Images)

Saudi Basic Industries Corp hit a 10-month closing high, lifting Saudi Arabia's index to a higher close.

SABIC rose 2.7 percent to 76.75 riyals, although this is likely to be lowered once closing average prices are calculated.

The petrochemicals producer was up 12 percent this month.

"The signals globally are that we're coming out of the worst of the global crisis and that's starting to filter into Saudi Arabia, which has been a laggard generally and among emerging markets in particular," said a Riyadh-based analyst who asked not to be named.

"It looks like regional and international institutions are buying SABIC and these funds don't seem to be very price sensitive, with the stock seen as a proxy for a global economic recovery."

SABIC's surge helped the index climb 0.6 percent to 5,818 points.

"We're still in Ramadan, so local retail investors are not very active and the rest of the market has not done much compared to SABIC," added the analyst.

Dubai's index ended lower for the first session in seven as investors booked gains from Thursday's 12-week high.

Air Arabia fell 2.6 percent and Deyaar slipped 2.4 percent.

Volumes fell to a week-low, indicating limited selling pressure.

"There's a little bit of profit-taking after five or six days of gains," said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.

"But foreign inflows are increasing and we're seeing buying on any weakness, particularly into property stocks."

Dubai's index fell 0.5 percent to 2,030 points, tracking minor losses on global markets on Friday.

"The correlation with international markets is stronger than ever and should continue until the end of the year at least," said Chamel Sahmy, Beltone Financial regional senior sales trader.

Abu Dhabi's benchmark also declined for the first session in seven, dropping 1.4 percent to 3,018 points.

RAK Properties and Dana Gas accounted for nearly half of all shares changing hands on the index between them and they fall 1.3 and 1.7 percent respectively.

Emirates Telecommunications Corp (Etisalat) was the main drag, plunging 5.3 percent from Thursday's 10-month closing high.

Most major banks fell, leading Kuwait's index to its fifth straight decline, while Zain extended losses.

Kuwait Finance House fell 1.5 percent, Ahli United Bank slipped 1.3 percent and Gulf Bank lost 3 percent.

Zain slipped 1.6 percent, taking its losses to 19.2 percent over the past week, after trading in a 15 percent range on Sunday.

Zain overcame initial losses to rise nearly 8 percent in early trading after a Kuwait newspaper report said two Indian firms are doing due diligence to buy a stake in the Kuwaiti operator, but then retreated.

The index fell 0.6 percent to 7,680 points.

Qatar's index ended higher for the fifth session in six as volumes slumped to a two-week low.

Qatar National Bank was the main support, climbing 1.4 percent and rival lender Commercial Bank of Qatar added 1.2 percent.

Masraf Al Rayan was the most active stock, accounting for about a fifth of all shares changing hands, and it fell 0.8 percent.

The index rose 0.4 percent to 7,129 points.

Bahrain's measure fell 0.4 percent to 1,515 points, its third straight reverse.

Oman's index hit a new 10-month closing high, despite volumes falling by nearly a third from the previous session.

Ahli Bank was the top trader and rose 4.6 percent.

Al Anwar Holding climbed 2.1 percent and Bank Sohar added 0.5 percent as trading was concentrated in the small to mid-cap names.

The index rose 0.4 percent to 6,573 points, its highest close since November 10 last year.

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