JEDDAH/DUBAI: Saudi Basic Industries Corp. (SABIC) hit a 10-month closing high, lifting the Saudi benchmark, as investors bet on a global economic recovery boosting earnings, although most other Gulf Arab markets fell.

Dubai and Abu Dhabi each ended six-session winning streaks, falling 0.5 to 2,030 points and 1.4 percent to 3,018 points respectively.

Further selling in Zain helped Kuwait’s index fall for a fifth trading day, but Qatar and Oman each added 0.4 percent.

The Kuwaiti index fell 0.6 percent to 7,680 points and Qatari index climbed 0.4 percent to 7,129 points. SABIC rose 2.38 percent to SR76.75, taking its gains to 12 percent this month and reaching its highest finish since Nov. 4 last year, with international funds buying SABIC as a proxy for a global economic recovery, according to Fouad Dajani, vice president at Credit Suisse Saudi Arabia. “This can also be backed up by the fact that the rest of the market has not been moving in line with SABIC — it has all been very SABIC-focused,” he said. “There is an increasing expectation that MENA (Middle East and North Africa) markets will play catch-up in the fourth quarter, with Saudi being at the forefront of this.”

The Tadawul All-Share Index (TASI) closed 0.55 percent higher at 5,817.80 points, with 6 declining sectors, ranging in losses from -0.06 percent in the Transport sector to —0.69 percent in the Retail sector. On the other hand the positive sectors had gains ranging from 0.03 percent in the Cement sector to 0.90 percent in the Industrial Investment sector. Overall market breadth was only slightly positive, with 57 advancers and 54 decliners, giving an AD ratio of 1.06, supported by an improving liquidity of SR3.67 billion, the Jeddah-based Financial Transaction House (FTH) said in its daily market commentary on Sunday.

Zain slipped 1.6 percent after trading in a 15 percent range and taking its losses to 19.2 percent over the past week since a major shareholder said it was in talks to sell a 46 percent stake in the telecoms operator. “There is continuous uncertainty in Zain, which is causing a lot of volatility and this is spilling over into the rest of the market,” said Shahid Hameed, Global Investment House head of asset management for the Gulf region.

Meanwhile, a senior Kuwaiti MP has questioned the government over what he calls a “lack of transparency” and conflicting reports on the sale of a stake in Zain telecom. Veteran opposition lawmaker and former three-time speaker Ahmad Al-Saadun told Finance Minister Mustafa Al-Shamali in a written query made available to reporters on Sunday that such contradictions could negatively impact the Kuwaiti bourse and national economy. “The contradiction in information ... and lack of transparency in the deal ... may have negative implications on the Kuwaiti bourse and national economy,” Al-Saadun said in the question.

Dubai’s index ended lower as investors booked gains from Thursday’s 12-week closing high, 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. Air Arabia and Deyaar were among the major losers, slipping 2.4 and 2.6 percent respectively, although index 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.”

Emirates Telecommunications Corp. (Etisalat) was the main drag on Abu Dhabi’s benchmark, plunging 4.1 percent from Thursday’s 2009 high in its biggest one-day reverse since March 31.

Oman’s index hit a new 10-month closing high, despite volumes falling by nearly a third from the previous session. The benchmark rose 0.4 percent to 6,573 points. “People are concentrating on the trading stocks — fundamental and institutional buying is better than last month, but is still very small,” said Adel Nasr, United Securities brokerage manager.