Most Gulf stock markets rose on Wednesday, buoyed by firmer oil prices, as Egypt climbed after rating agency Moody's Investors Service upgraded the country's sovereign debt. Brent crude had rebounded sharply in the past two days and although it pulled back slightly on Wednesday, it remained above $58 a barrel, about $1 above its levels when Gulf stock markets were open on Tuesday.
The Saudi stock index climbed 0.6 percent to 8,852 points in increasing turnover. It rose further from chart support at the March low of 8,497 points, which was tested and held on Sunday, and may now be at least a short-term bottom for the market.
Real estate stocks, which began recovering this week from a sell-off caused by a plan to tax undeveloped land, lost steam; Dar Al Arkan, the most heavily traded stock, fell 0.8 percent.
But petrochemical firms attracted buying after previously being beaten down by weak oil prices. Saudi Basic Industries , the biggest petrochemical producer, gained 2.5 percent to 84.50 riyals; any break above the late March high of 86.25 riyals would trigger a minor double bottom pointing up to the 94 riyal area.
Jarir Marketing, Saudi Arabia's second-largest retailer by market value, rose 2.8 percent after posting a 22.7 percent increase in first-quarter net profit to 247 million riyals ($65.9 million); analysts polled by Reuters had forecast on average a profit of 231 million riyals.
Among other Gulf markets, Qatar climbed 1.0 percent, pulled up by Barwa Real Estate, up 3.6 percent. The stock has been in an uptrend since the end of March, when the company's chairman Salah bin Ghanim al-Ali outlined planned projects for this year.
Dubai fell, however, as active low-priced stocks pulled back. Dubai Parks and Resorts, which had repeatedly tested and failed to break the 0.98 dirham level in recent days, dropped 3.7 percent to 0.90 dirham.
Gulf Finance House, which had jumped 8.6 percent on Tuesday in its heaviest trade since January 2014, after a 15 percent leap on Monday, was again the most active stock and fell 2.8 percent.
Social media postings in recent days suggested GFH might change its plan, announced in mid-March, for a capital reduction. But the company said on Wednesday in a statement to the Bahrain exchange, where it is also listed, that it would not change the proposal, which would be considered by an extraordinary general meeting of shareholders.
In Egypt, the market fell in early trade but ended 0.8 percent higher, adding to a 2.5 percent rebound on Tuesday. Property firm Talat Mostafa rose 2.1 percent after announcing a 0.15 Egyptian pound per share dividend.
Moody's upgraded Egypt to B3 with a stable outlook, citing an improving economy and economic reforms, although this was not a surprise - the international bond market had already factored it in.
The prospect of sharply increased new share supply as the Egyptian market recovers may be weighing on prices. Three local energy-related firms with combined capital of more than 8.5 billion Egyptian pounds ($1.11 billion) intend to list on the exchange, the bourse said on Tuesday. It attracted six new companies in the first quarter, representing combined capital of around 4 billion pounds.
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