RIYADH – Saudi Arabia's bourse rose to a near 16-month high on Wednesday, close to last year's peak, as investors bought shares in companies that they believed would profit from increased consumer spending during Ramadan. The index climbed 0.7 percent to its highest close since April 2012. Trading volumes were above the 30-day average for a second consecutive session. “This is unusually high activity especially ahead of Eid holidays. Investors are building positions on a positive earnings outlook for the third quarter,” said Asim Bukhtiar, head of research at Riyad Capital. Shares in food firm Almarai Co rose 4.1 percent and Savola Group advanced 2.4 percent. “Food and agriculture Q3 numbers will benefit from higher sales in Ramadan. That expectation is being reflected in the market.” Banking shares extended gains that they have made since telecommunications operator Zain Saudi reached an agreement with creditors to extend its outstanding $2.3 billion Islamic loan facility by five years. The banking sector index added 1.1 percent; Zain Saudi gave up some of its earlier gains on the news, easing 0.5 percent. Markets in the United Arab Emirates were mixed. Dubai's bourse climbed 0.9 percent to 2,889 points, its highest level since November 2008. Shares in Emaar Properties rose 1.2 percent, extending gains since the developer posted a second-quarter profit on Monday that beat analysts' estimates by a margin of 20 percent. Budget carrier Air Arabia and top bank Emirates NBD gained 3.7 and 1.1 percent respectively. Dubai's rally is backed by heavy retail activity and long-term investors are also optimistic about companies' fundamental outlooks for coming quarters. Abu Dhabi National Energy (TAQA) shed 0.8 percent after the firm swung to a net loss of 172 million dirhams ($46.83 million) in the second quarter. The benchmark slipped 0.9 percent, its third loss in the last four sessions since it hit a near five-year high. In Qatar, shares in telecommunications operator Ooredoo rose 1.7 percent, helping lift the benchmark out of its previous tight range. Ooredoo, formerly known as QTEL, posted a profit of 923 million riyals ($253.5 million) for the second quarter, which was above average estimates of 845.31 million riyals. Renewed buying in banks added support. Qatar National Bank and Doha Bank climbed 2.4 and 1.5 percent respectively. Doha's benchmark rose 0.4 percent to its highest level since September 2008. In Egypt, the market was little changed as buyers and sellers sat on the sidelines during a stand-off between the interim government and supporters of ousted president Mohamed Morsi. “Buyers are on the sidelines on fears of further bloodshed and potential sellers are not selling because they expect a political resolution,” said Mohamed Radwan, director of international sales at Pharos Securities. – Reuters
