The index ends barely 0.1 percent higher at 6,397 points, having risen more than six times as much earlier in the session and fallen by close to 0.4 percent.

“As quarterly earning announcements draw nearer, investors reposition themselves depending on forecasts they receive and these tend to be very disparate. That is why we have seen a relative volatility today,” says Turki Fadak, a member of Jeddah’s Trade Chamber’s financial markets committee.

The sector activity for the day was mostly negative with six out of 15 sectors closing with gains ranging from 0.02 percent by the media and publishing sector to 1.09 by the insurance sector. On the other hand losing sectors ranged from -0.02 percent by the energy and utilities sector to -0.72% loss by the real estate development sector. The overall market breadth for the day was positive with 47 advancers against 80 decliners giving it an AD ratio of 0.58. The liquidity for the day reached SR2.2 Billion, the Financial Transaction House (FTH) said in its daily market commentary.

Listed Saudi firms will start announcing third-quarter earnings as of the second week of October.

Shares in petrochemical giant Saudi Basic Industries Corp. (SABIC) shed 0.6 percent even after oil prices rose above $80, staying at a seven-week high, on Friday.

The rise in oil prices follows stronger than expected economic data from China and the United States raised hopes of demand recovery at the world’s largest consumers. The banking industry’s index gains 0.2 percent after mixed performances in banking stocks. Heavyweight Al-Rajhi Bank slides 0.6 percent and Samba drops 0.4 percent while Fransi and SABB add 1.7 and 1.9 percent respectively.

“People worry that some banks face more provisions for non-performing loans in Q3,” Fadak says.

Zain Saudi dominates trade with almost a fifth of the total traded shares and closes 1.9 percent having risen intraday by up to 5.7 percent on their first trading day after the announcement of a bid by Etisalat for parent company Zain.

— With input from agencies