SABIC stock surges on Q3 results to lift Saudi index

STOCK NEWS: Saudi index rose 2.1 percent to 6,531 points. (Getty Images)

Saudi Basic Industries Corp (SABIC) led the kingdom's benchmark index higher after reporting third-quarter profit that beat analysts expectations.

The announcement triggered a buying spree, with SABIC ending the day 6.3 percent higher, after hitting a year high in intraday trading.

"The SABIC result was better than expected, leading the Saudi market potentially poised for a rally," said Haissam Arabi, chief executive and fund manager at Gulfmena Alternative Investments.

"The situation is similar to SABIC's Q3 result in 2007. the market took off straight after," Arabi added.

The Saudi measure ended 2.2 percent higher at 6,535 points, its first advance for three sessions.

Market bellwether Emaar Properties helped spur a rebound on Dubai's index following a sell off the previous day.

Emaar leapt 3.5 percent, while rival developer Deyaar rose 2.3 percent. Telecommunications provider Du surged 4.8 percent, but Abu Dhabi-listed Emirates Telecommunications Corp (Etisalat) fell 0.8 percent after reporting a 5 percent rise in third-quarter profit late Sunday.

"The market is tracking two things -- global oil prices and movements in the international markets," said Vyas Jayabhanu, head of investments at Al Dhafra Financial Broker.

"There was a lot of purchasing from foreign investors. we are now looking for markets to reach the levels touched last week. If they break those levels, then they will move ahead," Jayabhanu said.

Dubai's index rose 1.4 percent to 2,324 points, while the Abu Dhabi benchmark dropped 0.9 percent to 3,177 points.

Aldar Properties ended 2.1 percent lower after recovering from a 5 percent fall earlier in the day.

"When trading is good in Dubai, Abu Dhabi usually sees selling. But we expect a crossover tomorrow," Jayabhanu added.

Kuwait's benchmark ended lower for the third straight session as stocks across most sectors slipped.

Telecoms provider Zain, which is in the process of takeover talks and is the largest listing on the Kuwait bourse, fell 1.5 percent.

"There is a lack of any drivers in the market," said a Kuwait-based trader.

"It is taking longer than imagined for some banks to report Q3 numbers so everyone is anticipating those. Plus, the only thing we see that will move the market is the Zain deal. If it goes through, this will turn the market around, but we need a trigger."

The measure ended 0.9 percent lower at 7,611 points.

Qatar's index declined for the first session in three, slipping 0.6 percent to 7,328 points. (Reuters)

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