Saudi index hits 4-week high, UAE property stocks up
Saudi Arabia's shares hit a four-week high, as investors build positions ahead of second-quarter earnings. The benchmark edges 0.1 percent higher to 6,660 points, its highest close since June 1.
“Banks are starting to make a move, expectations on earnings look pretty decent,” says a Riyadh-based fund manager on condition of anonymity.
“Investors will concentrate on what's going on locally. Things are looking good,” he adds.
Al Rajhi Bank, the largest Saudi bank by market value, gains 1 percent and Riyadh Bank rises 1.7 percent.
Saudi Basic Industries Corp (SABIC) and Saudi Arabian Fertilizers Co (Safco), two of the largest petrochemical stocks by market value, also rise 0.5 and 1.2 percent respectively.
Property stocks help Dubai's index make its largest one-day gain in 15 weeks and Qatar shares also end higher.
Dubai's index rises 2.4 percent to 1,553 points, its biggest gain since March 20.
Emaar Properties and contractor Drake & Scull each add 3.6 percent, while builder Arabtec gains 3.1 percent.
The United Arab Emirates extended visas for real estate investors to three years from six months on Tuesday, spurring a rally in property stock.
Abu Dhabi Property stocks also rise, helping the UAE capital's index climb 0.2 percent to 2,708 points.
Aldar Properties and Sorouh Real Estate add 3.2 and 3.3 percent respectively.
Qatar's benchmark climbs 1.4 percent to 8,478 points, its highest close since May 22.
“The big catalyst will be results,' says Hani Girgis, assistant chief dealer at Dlala brokerage. ”Expectations are positive, especially with banks.”
Many analysts are bullish on second-quarter earnings, backed by Qatar's burgeoning economy, with gross domestic production forecast to grow by 16.7 percent in 2011, according to a Reuters June poll.
Qatar National Bank climbs 2.2 percent, Industries Qatar rises 1.7 percent and Qatar Telecommunications gains 2.4 percent.
Elsewhere, Kuwait's index slips 0.6 percent to 6,173 points, its lowest close since March 8.