JEDDAH – Saudi Arabia's bourse rebounded Wednesday from a nine-day low as bargain hunters picked up battered stocks, while Dubai's Emaar Properties declined after quarterly earnings missed estimates. The stock benchmark TadawulAll Share Index rose 0.91 percent, extending year-to-date gains to 5.8 percent, closing at 6,791.04 points. Most sectors in Saudi Arabia rallied, with large-caps Saudi Basic Industries Corp and Al Rajhi Bank gaining 0.9 percent and 1.1 percent respectively. Dar Al Arkan rose 1.2 percent, accounting for a quarter of all shares traded on the index. “The market did not react (over the last two weeks) to the positive earnings growth we saw in the third quarter - we expected to see it recover a bit,” said Hesham Tuffaha, head of asset management at Bakheet Investment Group. “The Saudi market is extremely undervalued compared to global equity markets and the emerging markets. In the short term, the market will be volatile until there is a clear direction in global markets. But long-term, the market is attractive and we could see it at much higher valuations.” Saudi Arabia's stock exchange will be closed for Eid al Adha holidays and resume trade on Nov. 3. In Dubai, Emaar Properties fell 1.9 percent, dragging the emirate's bourse to a nine-day closing low. The developer posted a 4.7 percent drop in third-quarter net profit to 387 million dirhams, well below the average analyst forecast of 516.2 million dirhams. The index fell 0.5 percent to 1,641 points, its lowest finish since Oct. 15. “We saw a drop in Dubai today on the back of Emaar's results, which, though below expectations, were still relatively solid with recurring income continuing to dominate,” said Sleiman Aboulhosn, assistant fund manager at Al Masah Capital. “The market absorbed the results well - we're still optimistic on Dubai's recovery and expect a good fourth quarter.” Other shares were mixed, with Dubai Financial Market and Gulf Navigation down 1.9 percent and 0.7 percent respectively. Elsewhere in the United Arab Emirate, telecom operator Etisalat and National Bank of Abu Dhabi each climbed 0.3 percent. The two firms posted estimate-beating quarterly profits on Tuesday. Abu Dhabi's index gained 0.2 percent to 2,658 points, its highest close since August 2011. In Kuwait, the market ended 0.5 percent higher at to 5,770 points, rising for a second session from Monday's 10-week low. Bargain hunters returned as the investor panic over political unrest subsided. Qatar measure edged up 0.05 percent to 8,516 points, while Oman index slipped 0.1 percent to 5,654 points. Bahrain measure also declined 0.2 percent to 1,060 points. “So far there have been few earnings announced – they have been stable to negative but there is no clear direction yet,” Fouad Abdulrahman Alhadlaq, deputy general manager at Al Dar Asset Management, said of Kuwait. – SG/Reuters“We will have to wait and see what the results will be like for most companies to get a clearer direction for the market.” Nine of the 10 largest stocks by market value were flat. Boubyan Bank was the exception, rising 1.6 percent.
