Most other Middle East and global markets also advanced as buoyant US corporate results raised optimism over the strength of economic recovery stateside, while oil hit a three-week high on similar sentiment.

"Saudi results have been disappointing, especially petrochemicals and we're seeing selling from retail investors, who had higher expectations for Q2," says Marwan Shurrab, vice-president and chief trader at Gulfmena Alternative Investments. "Saudi is also extremely tied to crude's performance."

The Tadawul All-Share Index (TASI) climbed 0.35 percent to 6,089.95 points, only its second gain in eight sessions. The sector activity for the day was mixed with 7 out of 15 sectors closing with gains ranging from 0.10 percent by Energy & Utilities sector to 2.03 percent by Telecommunication & Information Technology sector. On the other hand the losses ranged from 0.34 percent by Retail sector to 1.33 percent by Insurance sector. The overall market breadth for the day was positive with 45 advancers against 81 decliners giving it an AD ratio of 0.55, the Financial Transaction House (FTH) said in its daily market commentary.

Saudi Basic Industries Corp. (SABIC) rose 2.1 percent, clawing back some of Tuesday's results-driven losses, but rival Rabigh Refining and Petrochemical Co. fell 9.6 percent as its profit halved quarter-on-quarter.

Saudi Telecom Co. rose 1.3 percent after being down as much as 2.6 percent intraday. Its second-quarter profit fell 31 percent.

Regional gains may prove fleeting, however, with investors seemingly beholden to global markets for direction. 

"Summer is here and markets will remain volatile - one day the glass is half full, the next it's half empty," says a Riyadh-based analyst who asked not to identified. "Sentiment is very delicate and a little bad news changes everything."

Emaar Properties rose 3.1 percent to help Dubai's index make its largest gain in two weeks. The index rose 1.4 percent to 1,531 points.

"Emaar is becoming a true play on hospitality, tourism and retail activity," said Fadi Al-Said, Head of equities and portfolio manager at ING Investment. "There is definitely mispricing for Emaar. We are invested in Emaar and we know we are going to make money eventually."

Al-Said warned that Emaar's diversified model means it is not a proxy for the Dubai real estate sector. 

The Abu Dhabi benchmark fell 0.3 percent to 2,536 points.

The Kuwaiti index climbed 1.1 percent to 6,567 points. The Qatari index rose 0.3 percent to 6,957 points. The Bahraini index dropped 0.8 percent to 6,173 points.

Egypt's index rose 0.9 percent. Commercial International Bank was the main gainer, climbing 2.6 percent. 
 
- With input from agencies