Saudi Arabia outperformed other Gulf stock markets on Monday as several major stocks bounced after poor earnings earlier this week, while a bull run in Kuwait slowed and Egypt rebounded sharply from a slide triggered by tax fears.
The Saudi index rose 1.7 percent in the highest trading volume since January 2. Food maker Savola, which had dropped 2.0 percent on Sunday after reporting a shock fourth-quarter loss, jumped 5.4 percent. The company's earnings were squeezed in part by tough price competition in a slowing Saudi economy, but the stock's rebound suggested many investors were looking forward to a stronger non-oil economy this year as Riyadh delays new austerity steps.
Banks also gained after some dropped this week on disappointing fourth-quarter earnings. Saudi British Bank surged 6.5 percent. The Kuwaiti index, which rose 15.6 percent between the end of last year and Sunday, added a further 0.6 percent on Monday in the highest trading volume since mid-2013.
National Bank of Kuwait (NBK), the biggest bank, climbed 2.9 percent; it extended its gains in the final minutes of trade after posting a 40 percent rise in fourth-quarter net profit to 75.9 million dinars ($248.9 million). EFG Hermes had forecast a profit of 69.2 million dinars.
Logistics giant Agility, which has yet to report quarterly earnings, surged 5.8 percent.
Eight of the 10 most heavily traded Kuwaiti stocks fell and none rose, however, a sign of increasing profit-taking pressure that could conceivably bring the bull run to an end.
In Dubai, the index fell 0.3 percent as Shuaa Capital pulled back 9.8 percent after a two-week rally. Trading volume in the stock was the highest since last September.
Abu Dhabi dropped 0.9 percent as banks slipped. Qatar edged down 0.1 percent but Doha Bank rose 2.5 percent.
The bank reported an 84.8 percent decline in fourth-quarter net profit to 35 million riyals ($9.6 million); three analysts polled by Reuters had forecast on average the bank would make a quarterly net profit of 215.58 million riyals. But Doha Bank also said its board was recommending a cash dividend of 3 riyals per share for 2016, the same level as in 2015.
Egypt's share market index rebounded 2.2 percent after dropping 4.6 percent in the two previous days, after Reuters reported authorities were considering temporarily reintroducing a stamp duty charge on stock market transactions.
Commercial International Bank, the largest bank, climbed 3.5 percent.
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