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
