Savola shares rose 2.9 percent to SR28.40 — its highest
close since May 9. It sold its 80-percent stake in Al-Mujamaat United Co. for
Real Estate to Knowledge Economic City.
Savola also confirmed a report that it would buy the
remaining 22 percent stake in pasta makers Al-Malika and Al-Farasha in Egypt.
Saudi Arabia's Tadawul All-Share Index (TASI) closed 0.2
percent lower, slipping from Monday's 21-week closing high.
Construction stocks were mixed as investors booked recent
gains in stocks which rallied ahead of the 2012 budget announcement. Saudi
Steel Pipes fell 6.4 percent, down from Monday's seven-month high.
The government plans to spend SR690 billion according to
its 2012 budget. The Finance Ministry said it had set aside SR250 billion from
the 2011 budget surplus to fund the construction of 500,000 homes.
"Speculation on building, construction and real
estate stocks will continue for the next two to three weeks, but the budget
will have minimal effect on companies' profits currently," said Hesham
Abo-Jamee at Bakheet Investment Group.
"Most of the projects will go to companies that are
not listed on the exchange like Binladin and Mabani."
Yanbu Cement rose 4.2 percent to a fresh all-time high.
On Monday it reported restarting three of four production lines which had been
closed for two months.
In Dubai, the index slumped 0.8 percent to a fresh
seven-year closing low of 1,319 points, hit by as a year-end trading lull.
"Valuations-wise, the market is attractive but the
problem is that there is virtually no investor interest," said Shakeel
Sarwar at Securities & Investment Co. (SICO).
"Until big institutional investors take the lead, I
don't think the market will recover in the short-term. Volumes have fallen, brokerages
are shutting down, and it's a sorry tale. There seems to be no investors
willing to come in and commit long-term capital."
Drake & Scull shed 2.1 percent, while Union
Properties dropped 5.6 percent.
Shuaa Capital slid 6.9 percent, down 60 percent this
year, in what traders called a falling-knife effect.
The struggling investment bank said earlier in December
it will lay off 29 of its employees in the first phase of a planned redundancy
plan to boost profitability.
Abu Dhabi's Aldar Properties fell 2.4 percent to a fresh
record closing low. The developer said the portion of its bonds converted into
1.2 billion shares last week by Mubadala Development Co. will be listed on Jan.
2.
Mubadala converted 2.106 billion dirhams ($573 million)
of bonds into shares at a price of 1.75 dirhams on Dec. 15.
In Qatar, blue chips helped lift the index 0.2 percent to
8,804 points, approaching Sunday's 37-week closing high.
Qatar National Bank added 0.5 percent, Barwa Real Estate
climbed 0.8 percent and Commercial Bank of Qatar advanced 0.2 percent.
