Saudi Arabia's index hit a two-week high on Sunday, buoyed by steady earnings and end-of-week gains in world equities and oil prices as similar sentiment lifted most Middle East bourses. Saudi Basic Industries Corp climbed 1.1 percent to 90.50 riyals. The petrochemicals producer is forecast to make a second-quarter profit of 5.62 billion riyals according to a Reuters poll.
The benchmark rose 0.7 percent to 6,241 points, its fourth gain in five days. "The market should breach 6,500 points if SABIC's earnings come within expectations, otherwise it will trade in a range between 6,000 and 6,500 points," said Hesham Abo-Jamee, Bakheet Investment Group head of asset management. "I think SABIC will cross 100 riyals within the next two weeks." Riyad Bank rose 1.1 percent, bolstered by its proposed a 0.6 riyals half-year dividend.
Banque Saudi Fransi climbed 3.7 percent, extending gains since reporting above-forecast quarterly earnings as lending and non-lending income increased. "Most bank profits came within our expectations and the market's rise yesterday was based on what happened with global markets and oil prices at the end of the week, not the profit announcements," said Jamee. Results will nevertheless support the Saudi market, he added, providing global equities are stable.
Egypt's secondary index rose 4.5 percent, its largest gain since April 2009 after Khaled Serry Siam was appointed the chairman of the Egyptian Exchange, replacing Maged Shawky. "EGX70 is leading the market," said Osama Mourad of Arab Finance Brokerage. "(The index) is driven by small and medium cap investors who felt that the previous stock exchange head was acting against their interests." Dubai's index hit a two-week high, but volumes tumbled, with longer-term investors remaining cautious.
Emaar Properties climbed 1.6 percent and Dubai Financial Market added 1.4 percent. "I still don't think people are sufficiently engaged to start putting risk back into MENA markets," said Zahed Chowdhury of Al Mal Capital.
"About 80 percent of Q2 numbers are still to come and people will watch for announcements from banks and real estate firms before defining positions. We don't really have any investors left. The market has been left mostly to (short-term) traders." Oman's index rose for a seventh session, adding 0.4 percent. Bank Muscat, which is forecast to report a 120 percent rise in second-quarter profit, climbed 1.7 percent.
"In the short term, investors will be occupied with the Q2 reporting season which might improve risk appetite," said Ajeev Gopinath, associate vice president for asset management at Gulf Baader Capital Markets in Muscat.