Tadawul index halts 3-day decline

Saudi Arabia’s stock benchmark advanced 0.2 percent, halting a three-day decline but daily turnover fell to its lowest since Jan. 14. Bellwether Saudi Basic Industries Corp. (SABIC) climbed 0.5 percent and Saudi Arabian Fertilizers rose 0.4 percent. Cement stocks supported, with Yanbu Cement and Saudi Cement up 8.5 and 0.8 percent respectively. Kingdom Holding advanced 2.9 percent. Gulf bourses closed mixed in muted trade Egypt’s bourse rallied to a seven week high on Tuesday, underpinned by optimism for a smooth presidential election and the first increase in foreign reserves since 2010. Cairo’s index rose for a fourth day, adding 0.6 percent to 5,056 points, its highest close since March 22. Dubai’s index slumped to a 12-week closing low as wary investors extended selling. Idropped 0.5 percent in its ninth decline in 10 sessions to its lowest close since Feb. 16. Volumes have slumped in recent weeks and may decrease further, with trading usually slowing down significantly over the summer as investors escape the searing summer heat.   “Selling pressure hasn’t abated much in Dubai, the short-term downtrend is intact,” said Sleiman Aboulhosn, assistant fund manager at Al Masah Capital. “Oil prices and other regional markets are also under pressure. The advent of summer is partly to blame, but global factors are also playing a role. Locally, we feel a bit more weakness over the next couple weeks is likely, given the current trend and decline in sentiment.” Dubai Financial Market dropped 3.7 percent, trimming its year-to-date gains to 25 percent. The Gulf’s only listed bourse reported a 14-fold rise in earnings. This increase was due to a surge in trading volumes during an early-year bourse rally and was widely anticipated. “In 2012, we expect the company’s revenue to increase by 79.5 percent as the investor risk appetite returns... also aided by the 4 percent expected expansion in Dubai’s economy,” Turki Al-Yaqout, financial analyst at Global Investment House, said in a note. In Qatar, mid-cap stocks lifted the index by 0.2 percent as bargain-hunters stepped in. Masraf Al-Rayan and Qatar Islamic Bank rose 0.2 and 0.3 percent respectively. Commercial Bank of Qatar gained 0.3 percent.