JEDDAH — Saudi Arabia's bourse fell further on Tuesday in line with oil prices, while most other Gulf markets rose, reversing a pattern seen in the last few weeks when the Kingdom outperformed the region. Brent and US oil dropped about 2 percent each as Iran and six world powers ramped up the pace of negotiations in an effort to reach a preliminary deal on Tehran's nuclear program by the end of the day. If achieved, a deal could ease sanctions and allow more Iranian crude onto world markets. The main Saudi stock index lost 2.0 percent to 8,779 points as heavyweight Saudi Basic Industries, the Kingdom's top petrochemicals producer, dropped 3.2 percent and was the main drag. Al Rajhi Bank, the leading retail lender whose earnings have been affected by a regulatory cap on consumer finance fees introduced last year, dropped 2.6 percent as a wider banking sell-off continued. Also, a number of stocks traded without dividends on Tuesday. Saudi Real Estate, down 3.2 percent, Kingdom Holding, which fell 2.9 percent, and several cement makers weighed on the market. Dubai's index jumped 2.0 percent as real estate developer DAMAC surged 4.9 percent. A company executive told Reuters on Monday its first-quarter sales hit 2.8 billion dirhams ($762 million), increasing from the previous quarter thanks to robust demand from foreign buyers. The news was a positive surprise as many analysts believe Dubai property prices and real estate activity probably peaked last year and are slowly going down. Emaar Properties, the emirate's largest listed developer, pared early losses and climbed 1.4 percent as DAMAC appeared to boost wider market sentiment. Engineering firm Drake and Scull, however, fell 1.0 percent after its board proposed paying no dividend for 2014, making it the third year in a row with no cash payouts. Abu Dhabi's bourse rose 0.8 percent, mostly because of large blue-chip lenders such as National Bank of Abu Dhabi , which jumped 3.0 percent. But Abu Dhabi National Energy Co (TAQA), which is sensitive to oil prices, tumbled 4.8 percent ahead of a board meeting later in the day that was to review its 2014 results. Also, trade unions of oil workers in the North Sea, where TAQA has assets, voted in favour of a strike last week over contract changes. Qatar's market rose 1.1 percent as most stocks were positive. Gulf International Services, which provides services to oil and gas companies, led gains, surging 4.9 percent. According to Thomson Reuters data, foreign investors started increasing their combined stake in the company this week after it fell to a two-month low of 12.6 percent on March 26. Kuwait's market inched down 0.1 percent but Jazeera Airways, the country's only listed carrier, jumped 3.9 percent after posting a 47 percent increase in fourth-quarter net profit before fleet sales, thanks to cheaper fuel. It also announced a share buyback program and proposed to more than triple its cash dividend. Egypt's market climbed 0.2 percent even as the biggest index component, Commercial International Bank , went ex-dividend and slipped 0.3 percent. Property stocks were particularly strong with Medinet Nasr Housing and Heliopolis Housing jumping 2.8 and 3.2 percent respectively. The Cairo government has stepped up efforts to address the shortage of housing in the country and this month announced plans to build a new capital city from scratch. It has also resolved some long-running disputes over land allocations made by previous cabinets. South Valley Cement surged 6.4 percent ahead of its 2014 earnings and dividend announcement. — SG/Reuters
