Rising oil prices helped Saudi Arabia's index escape more earnings gloom in the world's top crude exporter to end higher on Wednesday after being in negative territory for much of the session. Most other Middle East and global markets also advanced as buoyant US corporate results raised optimism over the strength of economic recovery stateside, while oil hit a three-week high on similar sentiment.
The kingdom's benchmark climbed 0.4 percent, only its second gain in eight sessions. Saudi Basic Industries Corp rose 2.1 percent, clawing back some of Tuesday's results-driven losses, but rival Rabigh Refining and Petrochemical Co fell 9.6 percent as its profit halved quarter-on-quarter. Saudi Telecom Co rose 1.3 percent after being down as much as 2.6 percent intraday. Its second-quarter profit fell 31 percent.
Regional gains may prove fleeting, however, with investors seemingly beholden to global markets for direction. Emaar Properties rose 3.1 percent to help Dubai's index make its largest gain in two weeks. A Reuters poll in July forecast house prices in the emirate would fall another 10 percent, having already plunged 55 percent from their peaks of two year ago.
"I can't see demand picking up and we'll definitely see more supply coming on line, but like trying to predict earnings, it's a black box, which is why vulture funds have not stepped in to buy up Dubai property to provide the market with a floor," said Chet Riley, Nomura property analyst. Egypt's index rose 0.9 percent. Commercial International Bank was the main gainer, climbing 2.6 percent.