Saudi Arabia's index rose to a 17-month high on Tuesday as rising oil prices, increased US consumer spending and expectations of improved domestic first-quarter earnings bolstered sentiment. Most other Middle East markets also advanced, with Qatar edging up to a 24-week closing high and Dubai gaining for a third session in four since the emirate unveiled a restructuring plan for indebted conglomerate Dubai World.
The Saudi index rose 0.7 percent to its highest close since mid-October 2008, while world stocks neared a similar milestone. Almarai rose 1.9 percent as it formed a joint venture with US food producer Mead Johnson Nutrition Co. Saudi Basic Industries Corp (SABIC) and Samba Financial Group added 1 and 1.7 percent respectively.
"Oil is above $82, world stocks are doing well and there is expectation for Saudi first-quarter earnings to beat last year," said Saleh al-Onazi, vice-president at Swicorp in Riyadh. "The market should continue to head towards 7,000 points." Dubai's index rose 1 percent to 1,850 points, clawing back some of the previous day's losses.
Arabtec surged 6.7 percent to a 12-week high, extending gains after the builder won contracts worth $370 million in Abu Dhabi and Qatar. Egypt's index fell as Orascom Telecom and Telecom Egypt lost 1.4 and 0.8 percent respectively. Orascom Construction Industries (OCI)dipped 0.5 percent and Commercial International Bank (CIB) dropped 1.5 percent as both firms went ex-dividend. Qatar's index rose 0.3 percent to its highest close since October 11, rebounding from the previous day's profit-taking. Masraf al Rayan gained 0.8 percent.
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