Saudi Basic Industries Corp (SABIC) and some banks advance, helping Saudi Arabia's Tadawul All Share Index (TASI) ended higher on Wednesday for a third day in four as rising expectations for the domestic and world economies boosted stocks. The index climbed 0.4 percent to 6,281.6 points, its highest close since Jan. 25. SABIC climbed 1.2 percent, Arab Bank added 0.9 percent and Banque Saudi Fransi rose 1 percent. The Saudi bank sector has risen 4.7 percent this year, outperforming the petrochemicals index, which has gained 1.4 percent over the same period. “Bank stocks have been strong year-to-date on the back of them wiping the slates clean by booking big provisions in Q4,” said a Riyadh-based analyst who asked not be identified. “That produced a lot of goodwill and gave the market the boost it needed - fears over provisions were a black cloud hanging over the market in 2009 - while SABIC's results have added another feel-good factor and together these have enabled Saudi to outperform the rest of the world.” SABIC reported a 15-fold increase in fourth-quarter profit, beating forecasts. The fortunes of the petrochemicals producer are closely tied to the world economy, so demand for the stock is rising on the back of renewed optimism on global markets. Elsewhere, Dubai's index DFM climbed 0.7 percent to 1,660 points, its highest finish for two weeks. Abu Dhabi's measure ADI rose 1.2 percent to 2,724 points, its highest close since Jan. 12. Emirates NBD rallied for a third day, helping Dubai's index DFM end higher for a fourth session in five, while Abu Dhabi's index ADI hit a three-week high as Abu Dhabi Commercial Bank again surged. Emirates NBD climbed 3.6 percent, taking its gains to 9.8 percent, with investors now betting the bank will follow the lead of rival UAE lender ADCB. Kuwait index edged up 0.2 percent to 7,032 points. National Bank of Kuwait was the main support, rising 1.8 percent and taking its gains to 7.5 percent since it reported a four-fold increase in fourth-quarter profit. Zain fell after its chief executive resigned, adding to uncertainty surrounding the telecoms operator. Zain ended 2.2 percent lower after being down as much as 4.4 percent intraday, equaling a 36-week low. Banks rose, helping Oman's index MSI end higher for the first time in last three sessions as local funds buy in, but foreigners continued to sell and the market was seen trading sideways. The index climbed 0.3 percent to 6,502 points.
