Saudi Arabia's stock market rebounded from near technical support on Wednesday but most major Middle Eastern bourses were weak, weighed down by concern about slowing economic growth. The Saudi stock index, which has support at its August low of 6,921 points, fell to 6,890 during the day but rebounded to close 1.2 percent higher at 7,035 points.
Petrochemical bluechip Saudi Basic Industries climbed 1.9 percent and Al-Rajhi Bank added 3 percent. Saudi Printing and Packaging Co, which has been rising since shortly after it reported quarterly earnings on October 20, added a further 9.7 percent, bringing its gains in the last five trading days to 59 percent.
Telecommunications firm Etihad Etisalat (Mobily) gained 2.1 percent after its chief executive, speaking a year after the company made the first in a series of shock earnings restatements, told Reuters that the company aimed to become profitable again within 12 months. Market turnover during the rebound was only moderate, however, and it was not clear that the Saudi bourse was starting any extended recovery. Investor sentiment was hit hard by Standard & Poor's downgrade of Saudi sovereign debt at the end of last week, and by a purchasing managers' survey on Tuesday showing private sector growth was the slowest since 2009.
Another purchasing managers' survey on Tuesday showed private sector growth in the United Arab Emirates dropping to a 30-month low, a sign that low oil prices are starting to drag on economies across the region. Dubai's stock index rose in early trade but a late bout of selling caused it to close 2.7 percent lower. Real estate bluechip Emaar Properties tumbled 5 percent.
Islamic mortgage provider Amlak Finance surged over 6 percent in early trade after it reported third-quarter group net profit jumped to 57 million dirhams ($15.5 million) from 7 million dirhams a year ago; nine-month profit dropped 11 percent. But the stock ended only 1.2 percent higher at 1.74 dirhams. It is not covered widely by analysts or followed by many institutional investors; Thomson Reuters data shows one analyst covers it, with a "sell" rating and a target of 0.30 dirham. Abu Dhabi's index fell 4.4 percent. Qatar's index edged down 0.04 percent.
Egypt's index edged up 0.2 percent, underperforming gains in emerging markets outside the region. A purchasing managers' survey on Tuesday showed Egyptian business activity shrinking at the fastest pace since February. Palm Hills Development added 3.4 percent, however, after saying it had agreed to co-develop an integrated residential and commercial community with a total size of 10,000 square metres.