JEDDAH: Banking stocks led a rally in Saudi Arabia Tuesday, covering some of the losses that followed the lower-than-expected third-quarter earnings, helping lift the benchmark Tadawul All Share Index (TASI). The index edged higher by 0.53 percent to 6,616.90 points. Al Rajhi Bank gained 1.8 percent and Samba Financial Group added 0.4 percent. "Banks is the only sector that has lost ground in the last few months," said Saleh Al Onazi, vice president of principal investment at Swicorp in Riyadh. "We are probably seeing some adjustment before the end of the year." Elsewhere in the region, the Dubai index DFM ended flat at 1,603 points. Property stocks declined in Dubai, led by Union Properties which dropped 1.9 percent. Arabtec slipped 0.5 percent. The Abu Dhabi index ended 0.3 percent higher at 2,703 points. Abu Dhabi's Aldar Properties led a rally, climbing 1.8 percent, after falling in the previous two sessions. Aldar gained 1.8 percent. The indebted developer has previously said it expect to receive a government support package by the end of the year. "Nobody is still sure when and how much support Aldar will get from the government," said Mohamed Khaled, Prime Emirates relationship manager. "There is no real news or catalyst in the market and traders are speculating." Qatar's index dropped by 0.9 percent to 8,646 points, the second day in a row, led by Barwa Real Estate which dropped 3.4 percent to close at a three-week low. Industries Qatar also declined 1.5 percent. The Kuwait index edged higher by 0.3 percent to 6,939 points. Banking stocks lifted Kuwait's index as investors bet on a strong rally in the sector next year. National Bank of Kuwait gained 1.4 percent and Gulf Bank climbed 3.6 percent. "Banks are expected to do well next year as most of them earned good profits in 2010 and they will be clear of provisions next year," said Essa Al-Hasawi, assistant manager at Zumorroda Investment Co in Kuwait. Telecom firm Zain dropped 2.6 percent, losing gains from a day before, but volumes were very low. "Trading volumes are half of what we usually see on Zain. Investors are waiting for a final word on its deal with Etisalat," Hasawi said.
