The sector activity for the day was widely negative with 11 sectors closing with losses and the remaining 4 sectors closing with gains. The losing sectors for the day ranged from 0.01 percent by the retail sector to 0.94 percent by the Media and Publishing sector. The gaining sectors on the other hand ranged from 0.07 percent by the Agriculture & Food Industries sector to 0.43 percent by the Petrochemical sector. The overall market breadth for the day also remained negative with 37 advancers against 86 decliners giving it an AD ratio of 0.43, the Jeddah-based Financial Transaction House (FTH) said in its daily market commentary.

The value of traded shares was SR4.74 billion on Saturday.

Saudi Vitrified Clay Pipes Co. was the top gainer on Saturday as it shares jumped 9.87 percent to SR61.25. The other major gainers were Saudia Dairy & Foodstuff Co (5.92 percent), Saudi Kayan Petrochemical Company (5.54 percent), National Petrochemical Company (5.25 percent) and Makkah Construction & Development Co. (3.37 percent).

Shares in Al-Jouf Agriculture Development Co. plunged 8.72 percent to SR31.40 on Saturday.

SABIC (Saudi Basic Industries Corp.) shares were trading at SR103.25 on Saturday as it beat analysts' forecasts with a SR5.43 billion net profit in the first quarter after improvements in both prices and demand.

Meanwhile, Nomura started coverage of the Gulf Cooperation Council (GCC) equity markets with a constructive short and long-term view.

The brokerage said factors such as GCC's (Gulf Cooperation Council's) strong economic fundamentals, equity liquidity, increasing liberalization of the financial sector and likely graduation of some GCC markets from frontier to emerging status should increase institutional participation.

"We believe that GCC's status as one of the easiest places to do business in the world (both developed and emerging) is not being properly acknowledged," the brokerage said in a note.

Educational standards and skills in GCC markets were ahead of emerging markets even though they trailed developed economies, the brokerage said.

Nomura said it is overweight on Qatar, Saudi Arabia and Kuwait.

The brokerage sees Saudi Arabia and Qatar as having the best longer-term fundamental outlook.

It said Kuwait, which has lagged its peers over the past ten years, is turning the corner and is expected to have sustainably higher growth rates, rising labor participation and employment. 

Even as GCC's nominal gross domestic product (GDP) continues to be correlated to oil price changes, investors somewhat underestimate the economic diversification achieved by them, Nomura said.

Saudi Arabia's non-oil manufacturing grew at a compound annual growth rate of 7.5 percent and represents 9 percent of constant value GDP, while the UAE has over the past ten years emerged as a financial and real estate center, it added.

However, it is neutrally weighted on Dubai due to a weak outlook offset by low values and did not have a compelling valuation case for Abu Dhabi.

"We believe that UAE economic performance will continue to be hindered by debt and excess capacity work-outs in Dubai and to a lesser extent in Abu Dhabi, although we do find some selective value in Dubai," the brokerage said.
 
- With input from agencies