Saudi Arabia's Kingdom Holding Co (KHC) surged on Wednesday after its main shareholder Prince Alwaleed Bin Talal gave its Citigroup shares worth $597 million, helping the Saudi stock market index edge up to a month high. Stock market benchmark Tadawul All-Share Index (TASI) climbed 0.35 percent to 6,260.9 points in its fifth straight gain. KHC also said it will cut its capital by 41.2 percent. Other Gulf markets were flat on low volumes as investors await fourth-quarter results before committing more cash. “I think we will probably trade sideways until we get profit announcements and can get a good understanding about the quality of earnings, not just the headline figures,” said a Qatar-based analyst who asked not to be identified. Kingdom Holding shares surge to boost Saudi index “Saudi Arabia has announced a record budget, which means more government spending and this should help companies across all sectors,” said Rami Sidani, Schroders Middle East head of investment. “The region has lagged global emerging markets, so we should see a good inflow from international funds into our markets. With oil stabilising around $80, there should be more interest in the Gulf.” Saudi Basic Industries Corp (SABIC), the largest listed company in the Gulf Arab region, ended 1.5 percent higher, touching a 14-month intraday high. Dubai's index ended slightly higher as bluechip stocks gave up most of their early gains in further signs the market is the preserve of day traders. Emaar Properties rose 0.5 percent, while Dubai Financial Market ended flat, having been up 1.1 percent intraday. Arabtec fell 0.4 percent to AED2.72. HC Research on Wednesday cut its share-price target on the construction firm by 6 percent to AED3.94. “I think we will probably trade sideways until we get profit announcement and we can get a good understanding about the quality of earnings, not just the headline figures,” said a Qatar-based analyst who asked not to be identified. “Have companies really cleared up their balance sheets to the point where they are now worth buying?” The index edged up 0.1 percent to 1,820 points. Trading volumes fell by almost half from the day before. Emirates Telecommunications Corp fell 0.5 percent, dragging Abu Dhabi's index to its third decline in five sessions. First Gulf Bank dropped 0.9 percent as investors booked profits from a three-day rally since it received approval to extend a share buyback programme. Waha Capital climbed 5.5 percent after the firm said it had finalised a $1.8 billion financing deal for the UAE Armed Forces to buy Airbus and Boeing military aircraft. Abu Dhabi's benchmark slipped 0.3 percent to 2,767 points, slipping from the previous day's three-week high. Qatar's index rose for a second session to hit a 2-week high, but volumes were low and an analyst warned the market is unlikely to escape its range-bound trend until corporate earnings come out. Commercial Bank of Qatar and Doha Bank each climbed 1.3 percent.
