JEDDAH: Gulf stock markets were narrowly mixed after some companies reported mediocre first-quarter earnings.
The main Saudi index edged up 0.2 percent to 9,834 points and petrochemicals giant Saudi Basic Industries (SABIC), which is poised to benefit from oil’s recovery, was the main support, climbing 1.8 percent. Most other Saudi petrochemicals stocks were also positive.
This helped Saudi Arabia’s index confirm a break of major technical resistance in the 9,572-9,745 point area, where the 200-day average roughly coincides with the March peak. It now faces no major chart resistance before the September peak of 11,160 points.
With year-to-date gains of 17.7 percent, Saudi Arabia is the top performer in the Gulf region.
The publication of regulations allowing direct foreign investment in the stock market, scheduled for May 4, could provide a fresh catalyst for the market, although some analysts say local investors are overestimating the upcoming foreign fund inflows since equity valuations are quite high at present.
Dubai’s index rose as much as 0.9 percent during the day but struggled with major technical resistance at its 200-day average of 4,250 points and closed just 0.3 percent higher at 4,229 points.
Emaar Malls Group, a unit of Dubai’s biggest listed developer Emaar Properties, climbed 1.6 percent after reporting a 32 percent rise in first-quarter net profit on Wednesday.
SABIC shares rise 1.8%
