JEDDAH – Saudi Arabia's bourse rose 0.66 percent to 9,752.16 points on Sunday. Saudi Basic Industries Corp (SABIC) was the main support, rising 1.1 percent after proposing a cash dividend for the first half of 2014 of SR2.5 per share, up from SR2.0 a year ago. Among other names that helped lift the index was dairy firm Almarai which reported an 8.8 percent increase in second-quarter net profit. The firm made a quarterly profit of SR433.3 million ($115.5 million), in line with analysts' average forecast of SR430.4 million. Shares in Almarai rose 1.3 percent, while Saudi Hollandi Bank rose 2.3 percent after posting a 28.1 percent increase in second-quarter net profit. At SR480.3 million, its profit was 6.9 percent above analysts' average forecast. Elsewhere in the region, blue-chip banks and property-related stocks, led by Dubai construction firm Arabtec, lifted markets in the United Arab Emirates on Sunday while earnings reports supported Saudi Arabia's bourse. Dubai's main index jumped 4.4 percent as shares in Arabtec surged their daily 15 percent limit. Among other top gainers were bourse operator Dubai Financial Market and developer Union Properties, up 12.6 and 10.5 percent respectively. Emaar Properties, the emirate's largest listed developer, added 2.0 percent and Dubai Islamic Bank jumped 3.1 percent. Banks and property developers also lifted Abu Dhabi's index, which added 1.7 percent. First Gulf Bank gained 3.1 percent, National Bank of Abu Dhabi rose 1.7 percent and Aldar Properties jumped 5.0 percent. UAE markets started recovering this month after Dubai's bourse plunged 22 percent in June and Abu Dhabi lost 13 percent, in panic selling triggered by the bursting of a speculative bubble and management turmoil at Arabtec. At a news conference last week, Arabtec assured investors its projects were on track, including a giant $40 billion deal for residential properties in Egypt. The stock's surge on Sunday was partly due to investors rushing to buy the name before it hit the 15 percent limit, said Julian Bruce, director of Western institutional equity sales at EFG Hermes in Dubai. The Dubai government's announcement on Saturday of the launch of a project to build a huge entertainment and hotel district, including the world's largest shopping mall, also lifted sentiment. The “Mall of the World” project was originally announced 18 months ago, and Saturday's announcement did not give details of timing, cost or financing. But the government's bullish presentation of the plan was taken as a cue to buy stocks. “It was an excuse to go in and buy real estate sector stocks,” said Bruce. Qatar's bourse, which like the UAE bourses was upgraded to emerging market status by index compiler MSCI at the end of May, edged down 0.4 percent on Sunday after jumping 7.7 percent in the first three days of July. “In Qatar we had seen a very strong technical rebound (last week), but it may have been too strong so we are now seeing some profit-taking,” said Sebastien Henin, head of asset management at The National Investor in Abu Dhabi. Egypt's bourse rose 0.8 percent after the Cairo government sharply cut fuel subsidies, reducing the burden on stretched state finances. Although the move, which has raised gas gas prices by 30-75 percent, may crimp some companies' profits, it is generally seen by investors as proof that newly elected president Abdel Fattah el-Sisi is willing to carry out unpopular but necessary reforms. Kuwait's bourse slipped 0.3 percent after opposition supporters called for a fresh public protest later on Sunday; police dispersed demonstrators at a rally last Thursday and said they had thrown stones, burned car tyres and blocked roads. Investors say political tensions have been one of the reasons that Kuwait's market has underperformed the region this year. In Oman, Galfar Engineering rose 1.2 percent after winning a $105 million road building contract in the country. The deal showed the company can still win state contracts after former executives were jailed earlier this year for corruption. — SG/Reuters
