The Saudi stock benchmark Tadawul Al Share Index (TASI) climbed 1.07 percent to 5,988.18 points on Monday. Saudi Basic Industries Corp (SABIC) surged as bargain hunters bought the stock following recent falls, helping Saudi Arabia's index end higher for a first day in three. SABIC climbed 4.6 percent to SR85.75, but is down 19.7 percent since May 4's 19-month high as it tracks tumbling oil prices. “SABIC has suffered a huge drop and was heavily affected by the declines in petrochemical and oil prices,” said Youssef Kassantini, an independent financial analyst. “Although petrochemical prices are under pressure, the market has over-corrected and SABIC is trying to get back to a fair price. Any time SABIC heads toward SR80 bargain hunters step in.” Samba Financial Group climbed 5.3 percent on slim volumes and Yanbu National Petrochemical Co's (Yansab), a SABIC affiliate, gained 1.7 percent. Elsewhere in the region, Dubai index climbed 0.3 percent to 1,518 points, but remains the worst performing Middle East benchmark this year, losing more than 14 percent. Abu Dhabi is the second-worst, dipping about 6.5 percent. “There is no interest from European investors in our market,” said Vyas Jayabhanu, head of investments, Al Dhafra Financial Broker. “Most foreign activity has been limited to individuals - foreign funds and investment houses are absent because they're worried about the situation in Europe and have no cash spare for the UAE - they would rather target other emerging markets.” Abu Dhabi ended lower for an 11th session in 12, dipping 0.3 percent to 2,531 points. Waha Capital dropped 3.5 percent. Retail selling condemned Kuwait's index to a second straight decline as volumes slumped to a 16-month low, with little local news to attract investors. National Bank of Kuwait fell 1.7 percent and Kuwait Finance House ended 1 percent lower, having hit a four-month intraday low. “The story is that there's no story,” said a Kuwait trader who spoke on the condition of anonymity. The index fell 0.7 percent to 6,665 points as trading volumes slump to their lowest level since Jan. 21, 2009. The trader said tougher new rules introduced earlier this year after Kuwait's parliament approved the creation of a bourse regulator are deterring investors, while a lack of local catalysts and Zain's ongoing suspension are other reasons behind the low volumes. “There are no sparks in the markets, so it's just some retail investors selling today,” the trader added. Qatar's index fell 0.2 percent to 6,762 points, giving up initial gains as Qatar Telecom dropped 1.1 percent. Oman's benchmark dipped to a fresh 2010 low as declining world markets and uncertainty over the impact of last week's cyclone spook investors. The index fell 1.2 percent to 6,064 points, hitting its lowest level since Dec. 13. Benchmark crude for July delivery lost 7 cents to settle at $71.44 a barrel on the New York Mercantile Exchange. Brent crude gained 3 cents to settle at $72.12 a barrel.
