Saudi Arabia's stock market continued rising on Sunday as it reacted to last month's news that it would open to direct foreign investment. Most other Middle East markets moved little in modest trade as investors returned from long Eid holidays.
The Saudi index rose for a fifth day, gaining 0.9 percent to a six-year high of 10,303 points, in a rally ignited by the announcement that foreign institutional investors would be permitted to buy stocks from the first half of next year.
However, the focus of trade switched from big petrochemical firms and banks likely to be favoured by foreigners to second-tier stocks such as property firm Dar Al Arkan, up 0.9 percent.
PetroRabigh climbed 3.7 percent, breaking above this year's peak hit in early June, after saying Saudi Aramco and Sumitomo Chemical would transfer ownership of a planned 32 billion riyal ($8.5 billion) petrochemical facility to it.
Abu Dhabi was the region's weakest major market, falling 1.2 percent to 4,993 points. Aldar Properties, the most heavily traded stock, sank 3.2 percent after reporting a 168 percent year-on-year jump in second-quarter net profit, excluding one-time merger gains in the corresponding period last year. That was in line with analysts' estimates.
Dana Gas also traded heavily before a second-quarter earnings announcement that may give details of its operations in Iraq and attempts to recover overdue receivables there. The stock closed 1.4 percent lower.
Most other markets traded narrowly, with sentiment constrained by the slide of US markets at the end of last week on Argentina's debt crisis, confusion over US monetary policy and geopolitical tensions.
Dubai edged down 0.2 percent as many property-related firms were soft, though heavyweight Emaar Properties, which is expected to announce second-quarter earnings within days, gained 0.8 percent.
Qatar slipped 0.1 percent as Mesaieed Petrochemical lost 0.6 percent after reporting a first-half net profit of 899 million riyals ($247 million), while Salam International Investment fell 1.7 percent after saying interim earnings per share roughly tripled.
The market was supported, however, by Barwa Real Estate, which rebounded 3.3 percent; it had plunged in the two previous days after reporting a second-quarter loss.