Oil rose above $74 in line with a timid recovery across financial markets, but was set for its biggest monthly loss in 18 months after the European economic crisis raised the prospect of reduced fuel demand.
Saudi Arabia’s Tadawul All-Share Index (TASI) closed 0.6 percent higher, led by Saudi Basic Industries Corp (SABIC) which rose 1.4 percent.
The market closed with a mediocre gain of 33.24 points after tight trading. Sector activity was mostly positive with 10 out of 15 sectors closing with gains, the Financial Transaction House (FTH) said in its daily market commentary. Losses ranged from 0.06 percent in Energy & Utilities and Multi-Investment to 1.14 percent in Hotel & Tourism. On the other hand, the gaining sectors ranged from 0.14 percent by the Transport sector to 1.98 percent by Media & Publishing. The overall market breadth for the day remained positive with 74 advancers against 35 decliners giving an AD ratio of 2.11, the FTH said.
Both Abu Dhabi and Dubai fell by above 1 percent. "It's not a major fall," said Ali Khan, managing director and head of brokerage at Arqaam Capital. "Certain stocks have fallen quite a lot but on low volumes."
Dubai-listed Tabreed was one of the day's biggest fallers, declining 4 percent. The air conditioning firm said it won approval from shareholders to issue bonds worth up to 4.2 billion dirhams ($1.14 billion).
Shareholders also approved canceling up to 970 million shares of 1 dirham each. "Tabreed hasn't performed well in the first quarter. Overall the situation is not very bright," said Vyas Jayabhanu, head of investments, Al-Dhafra Financial.
Kuwait's bourse was the region's biggest decliner, falling 1.7 percent as National Bank of Kuwait lost 3.3 percent and Ahli United Bank 5.2 percent.
Shares of Gulf Finance House closed 2.4 percent lower in Kuwait and fell 6.9 percent on Bahrain's bourse after the lender said it will sell its 50 percent stake in Bahrain Financial Harbor to Emar Bahrain.
Egypt's main index rose 0.5 percent, its fourth session of gains, buoyed by Orascom Telecom which rose on continued speculation over an imminent close of its deal to sell assets to South Africa's MTN.
— With input from agencies
