Saudi Arabia and Qatar's markets closed higher on Wednesday, supported by gains in world stocks and higher oil prices ahead of a Federal Reserve meeting that may hint at more monetary easing, while other Gulf markets slipped. Saudi Basic Industries Corp (SABIC) added 1.3 percent after the petrochemicals producer launched a new venture capital arm to invest in new technology.
The kingdom's benchmark rose 1 percent, trimming 2011 losses so far to 6.1 percent. It ended lower on the previous three days after hitting a 12-week closing high of 6,236 points on Saturday. "The market broke through 6,197 points for three days in high volume, which gives a buy signal and target of 6,350 points," said Adel Al Badr a portfolio manager with Alinma Bank.
Al Rajhi Bank, the largest listed lender by market value, was the main support, rising 1.8 percent. Samba Financial Group gained 3.8 percent and Banque Saudi Fransi climbed 3.5 percent. "Europe is still in flux. If there is evidence for a resolution, that could help give a direction," said Asim Bukhtiar, head of research at Riyad Capital.
Greek Prime Minister George Papandreou won the backing of his cabinet on Wednesday to hold a referendum on a 130 billion euro bailout package, sending markets into a tailspin. Saudi Arabia's bourse traded for the last day ahead of a week-long holiday marking Eidul-Azha. Other Gulf markets will be shut starting November 6.
In Qatar, the index ended 0.6 percent higher, recovering most of the losses of past two sessions. "Markets are moving in a similar pattern as global trading," said Robert Pramberger, acting head of asset management at Doha-based investment company The First Investor. Qatar National Bank gained 0.7 percent and was the main support. Industries Qatar rose 1.4 percent.
Pramberger said that volumes picked up in the last week, with foreigner buyers coming in with a long-term view and on valuations. "Volumes will come back after Eid again, but I don't see any major catalysts (for Qatar)." Elsewhere, Dubai's index lost 0.4 percent, down for a third-day from Sunday's four-week high.
Emaar Properties shed 1.1 percent, Dubai Investment slipped 1.7 percent and Aramex fell 1.7 percent. "You're having to change your investment horizon, which is short anyway, from bear to bull within 24-hours," said Haissam Arabi, chief executive and fund manager at Gulfmena Investments.
Abu Dhabi's index closed down 0.3 percent and Oman's market shed 0.5 percent. Meanwhile, Egypt's main index ended flat as buying of small and mid-cap stocks offset a decline by banks after Moody's downgraded its ratings on five Egyptian lenders.
National Societe Generale Bank fell 1.1 percent, Commercial International Bank shed 0.5 percent and Al Baraka Egypt Bank slipped 0.6 percent. The wider EGX70 index jumped 2.8 percent as local investors targeted companies that lagged a rally by the biggest stocks in the past three weeks, traders said.