Saudi Arabia's stock benchmark Tadawul All Share Index (TASI) advanced for a third day as rising oil prices boosted sentiment in the world's top crude exporter. Saudi Basic Industries Corp (SABIC) added 2.6 percent, Samba Financial Group climbed 4.6 percent and Al-Rajhi Bank climbed 1.7 percent. Saudi Electricity Co surged 7.9 percent, taking its gains to 22 percent since saying it would raise tariffs, while just before market close the utility said it would sign a $1.47 billion loan to finance a new power plant. The index rose 1.85 percent to 6,110.98 points. Dubai's benchmark DFM ended lower for a fourth day in five, slipping to a 14-month low as volumes also slumped, indicating investors believe there is further downside. Dubai Investments Co fell 1.6 percent and Arabtec lost 1 percent. “Because of the global headwinds, a lot of people think the upside locally is limited so people are happy to sit out the market,” said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading. “Volumes are dismal - people think they won't miss much if there is an upside, but the downside could be much heavier. “Everyone is waiting to see if the euro zone comes out with some decisive action - there is no domestic news flow.” The index slipped 0.05 percent to 1,513 points, its lowest finish since March 18, 2009. Volumes hit a three-month low. Abu Dhabi's index ADI edged up 0.02 percent to 2,525 points. Worldwide, investors are also awaiting a European Central Bank meeting on Thursday to see if it will announce fresh steps to ease strains from the euro zone's debt crisis. The ECB is also expected to publish a new set of economic forecasts for the region which are likely to signal somewhat stronger activity, despite worries that debt problems and government austerity measures will sharply brake growth. Banks were the main drag as Qatar's index QSI fell for a third day in four in the absence of local catalysts to attract buyers, while ongoing international volatility is also deterring investors across the Gulf Arab region. Qatar Islamic Bank fell 0.7 percent and Commercial Bank of Qatar dropped 0.6 percent. Industries Qatar edged up 0.1 percent, bolstered by a rise in oil prices and strong Chinese export data, with the stock seen as a proxy for world trade. The index fell 0.3 percent to 6,803 points. Bahrain's measure BAX slipped 0.2 percent to 1,412 points. Zain falls after resuming trade following a 11-day suspension, and weighs on Kuwait's index which ends within five points of Sunday's 2010 closing low. Zain dips 3.4 percent. The stock had been forecast to rally ahead of an expected dividend from its $9 billion African asset sale, completed on Tuesday. However, this payout will not be made until 2011, it said, and would be between 200 and 240 fils per share.
