Banks buoy Saudi index; other major Gulf bourses dip

Saudi Arabia's stock market outperformed the region on Wednesday, boosted by gains in financial shares, while other major Gulf markets ended lower.

Saudi Arabia's Crown Prince Mohammed bin Salman said on Tuesday the kingdom had no plans to introduce income tax and a decision last July to triple value-added tax to 15% was temporary.

The country had tripled VAT to offset the impact of lower oil revenue on state finances in a move that had shocked citizens and businesses expecting more support from the government during the coronavirus pandemic.

Saudi Arabia's benchmark index advanced 2.6%, buoyed by a 4.3% jump in Al Rajhi Bank and a 6.5% increase in petrochemical firm Saudi Basic Industries.

Elsewhere, oil behemoth Saudi Aramco gained 1.1%. In the televised remarks, the crown prince said the kingdom was in discussions to sell 1% of Aramco to a leading global energy company.

Dubai's main share index lost 0.4%, weighed down by a 1.6% fall in Emaar Properties and a 0.9% decrease in Dubai Islamic Bank (DIB).

DIB, the United Arab Emirates' biggest sharia-compliant lender, reported a net profit of 853 million dirhams ($232.25 million) in the first-quarter, down from 1.11 billion dirhams a year earlier.

However, Gulf Navigation finished 1.3% higher, as the shipping firm completed a debt restructuring process of 200 million dirhams ($54.45 million) and expects a shift to profitability in 2021.

In Abu Dhabi, the index dropped 0.6%, hit by a 1.2% fall in the country's largest lender First Abu Dhabi Bank .

The Qatari index eased 0.3%, with petrochemical maker Industries Qatar losing 0.6%, ending four sessions of gains.

Among others, Ooredoo was down 0.1%. The telecoms firm said on Wednesday it has extended the period of exclusivity for a memorandum of understanding with CK Hutchison Holdings Ltd for a possible combination of their respective telecommunications businesses in Indonesia.

Outside the Gulf, Egypt's blue-chip index retreated 1.1%, as most of the stocks on the index were in negative territory including Commercial International Bank, which was down 4.1%.