Saudi Arabia's stock index gained 0.62 percent to a 42-month high at 7,567.98 points Wednesday as Samba Financial Group added 2 percent, Bank Aljazira climbed 6.9 percent and Riyad Bank rose 1.5 percent. Recent oil price gains support petrochemical stocks, with Saudi Basic Industries Corp (SABIC) gaining 0.7 percent, National Industrialization (Tasnee) rising1.1 percent and Saudi International Petrochemical (Sipchem) up 1.3 percent. Gulf sentiment was lifted as upbeat US economic data lifted risk appetite and pushed world stocks higher. “The rally today is driven by global sentiment; high oil prices are also helping for the petrochemicals sector,” said Paul Gamble, head of research at Jadwa Investment. “While some profit-taking may be warranted, we should have upward momentum for the next few weeks. Sentiment is sufficient (to) push the market higher, unless something external happens to derail it.” In Dubai, bellwether Emaar Properties helped lift the index 0.5 percent. The developer's trading volumes hit a 22-month high. It climbed 2 percent, take its 2012 gains to 21 percent. “Emaar has moved to a more diversified portfolio with hospitality and tourism and reached a more mature level, with improved quality given the recurring revenues,” said Rami Sidani, Schroders Middle East head of investment. Emaar's share price surge this year may be waning, however, as investors increasingly looked to book gains. Contractor Drake and Scull added 1.9 percent after winning a $230 million contract in Algeria. Abu Dhabi's Aldar Properties and Sorouh Real Estate extended gains, up 6.6 and 5.8 percent respectively. The two developers are in merger talks and a decision is expected within three months. The UAE capital's measure ended up 0.3 percent, edging towards last week's seven-month high. Elsewhere, Oman index climbed 0.3 percent to 5,975 points. Qatar benchmark eased 0.03 percent to 8,627 points. Kuwait measure advanced 0.3 percent to 6,134 points. Bahrain measure slipped 0.3 percent to 1,149 points. Moreover, Egyptian stocks rallied also after their biggest losing streak in months created fresh buying opportunities supported by an upbeat global backdrop. Cairo's main index rose 0.8 percent, lifting from Tuesday's three-week low. The benchmark had lost 7 percent in four sessions, drawing bargain-hunters. Meanwhile, oil prices fell Wednesday, pressured by a stronger dollar, and as the International Energy Agency predicted a large drop in Iranian crude exports. New York's main contract, light sweet crude for delivery in April dipped 27 cents to $106.44 a barrel. Brent North Sea crude for April shed 31 cents to $125.91 in late London deals.
