“Third quarter results so far have not been very positive. SABIC’s announcement ... could have a significant reflection on the index,” said Musa Haddad, head trader in the asset management group at National Bank of Abu Dhabi.

SABIC, the world’s largest chemical firm by market value, beat estimates with a 46-percent rise in third-quarter profit on Sunday, buoyed by higher plastic and petrochemical sales.

Shares in SABIC rallied toward the end of the session and ended 2.30 percent higher at SR89, before the results were announced.

The Tadawul All-Share Index (TASI) closed 0.54 percent higher at 6,260.55 on Sunday. The sector activity for the day was mixed with 8 gaining sectors against 7 losing sectors. The gaining sectors ranged from 0.09 percent by the Agriculture & Food Industries sector to 1.99 percent by the Petrochemical Industries sector. On the other hand the losing sectors for the day ranged from 0.32 percent by the Building & Construction sector to 2.081 percent by the Energy & Utilities sector. The overall market breadth for the day was positive with 67 advancers against 58 decliners giving it an AD ratio of 1.15, the Financial Transaction House (FTH) said in its daily market commentary.

The liquidity for the day reached SR2.37 billion.

Dubai’s index extended losses after investors booked profits from a recent rally but analysts said the upward trend remained intact. The index retreated 0.1 percent to 1,744 points.

Construction heavyweight Arabtec fell 1.8 percent, having hit a near-five month high last week, and real estate bellwether Emaar Properties slipped 0.5 percent.

“The market is seeing some profit-taking on the downside, and it was due for a short-term correction,” Haddad said.

“The outlook is still positive; it’s the concept of buy on the dips. Investors are waiting for the market to correct and then they will buy again.”

While investors await quarterly earnings before taking up new positions, the small to medium-cap companies attracted interest in Abu Dhabi, continuing the trend from last week. The Abu Dhabi advanced 0.2 percent to 2,763 points.

Islamic insurance company Methaq soared 9.3 percent, its third consecutive session of gains in which the share price has risen about 25 percent.

Similarly, Arkan Building Materials Co. rose 8.2 percent on Sunday, taking gains from the last three sessions to about 25 percent.

Both companies issued statements on the bourse website saying there was no information to affect the share price and one Dubai-based analysts said the activity on the stock was led by retail investors. 

National Bank of Oman posted an increase in third-quarter profit but results fell short of analysts’ estimates.

NBO shares fell 3.1 percent, weighing on the index. The Omani index ended 0.1 percent lower at 6,528 points.

“The decline in NBO’s stock price is justified as the bank posted lower than expected third quarter 2010 earnings,” says Gunjan Gupta at Oman Arab Bank.

Egypt’s index ended almost flat at 6,873 points with Orascom Telecom (OT) continuing its dip from last week, offsetting gains by tourism-related stocks in strong volume.

Heavyweight Orascom fell 2.9 percent on uncertainty over the fate of its Algerian unit, traders say.

“OT is dragging the market due to its high volumes and it won’t rebound unless OT enters positive territory,” said a Cairo trader.

In Qatar, real estate development firm Mazaya Qatar began trading on the bourse on Sunday after holding a $137.4 million initial public offering in January. Mazaya shares fell 4.5 percent. The Qatari index slipped 0.1 percent to 7,810 points.

The Kuwaiti index climbed 0.3 percent to 7,034 points.
 
— With input from agencies