Saudi Arabia's stock market fell on Sunday the details of the kingdom's economic reforms are announced, but telecommunications operator Zain Saudi soared in response to a loan refinancing. Other regional markets were mixed.
The Saudi index dropped sharply late in the session and closed 1.2 percent lower.
The Saudi government is expected to announced on Monday details of economic reforms that it originally outlined in April. That may include targets in a drive to make government more efficient, efforts to involve the private sector in development, and possibly fiscal steps to curb a budget deficit caused by low oil prices.
April's announcement was largely a list of aspirations rather than specific measures, and it remains unclear whether Monday's announcement will include much more detail.
In any case, Saudi investors sold on Sunday in the belief the market has already largely digested positive aspects of the reforms and the details may contain aspects that are bad for stocks, such as fiscal austerity.
Mining company Ma'aden, which surged after the April announcement because of hopes that it would spearhead the reform plan's efforts to develop the mining industry, sank 3.3 percent on Sunday.
Saudi Basic Industries, which could be hurt by future cuts in energy and gas feedstock subsidies, dropped 3.6 percent.
But Zain Saudi jumped its 10 percent daily limit to 8.25 riyals after saying it had signed a 2.25 billion-riyal ($600 million) loan refinancing with a group of four local banks. The stock is below its mean target price of 9.64 riyals, according to the average of nine analysts polled by Reuters.
Business activity in the United Arab Emirates' non-oil private sector grew faster in May as employment resumed expanding, according to a purchasing managers' survey published on Sunday.
"This may have offered some encouragement for investors to buy back on price dips," said a Dubai-based trader.
Abu Dhabi's index added 1.0 percent as investors bought banking shares, which were the main laggards last week.
First Gulf Bank and Abu Dhabi Commercial Bank climbed 1.3 and 1.2 percent respectively.
Dubai's index reversed early losses and added 0.7 percent to 3,285 points, rebounding from technical support on its 100-day average, now at 3,237 points, as it did in late May.
Shuaa Capital jumped 3.8 percent, taking its gains to 5.6 percent since last Tuesday, when Reuters reported that several local investment firms were among the bidders for Dubai Group's 48.4 percent stake in the Islamic financial firm.
Dubai Islamic Bank added 1.8 percent, snapping a four-session losing streak. The stock had been in a downtrend since its rights issue started trading on May 30; the last day of trading those rights will be June 13.
Business activity in Egypt shrank for the eighth straight month in May though at a slower pace than in the previous three months, a purchasing managers' survey showed. With more than four-fifths of stocks retreating, Cairo's main index fell 0.7 percent.
Cleopatra Hospital Holding, which listed on Thursday, fell 0.4 percent. The company announced a 57 percent increase in its 2015 annual net profit to 68.8 million Egyptian pounds ($7.8 million). On Thursday, shares in the hospital operator jumped 6.9 percent.
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