Saudi market rebounds helped by insurers

Dubai : Saudi Arabia’s stock market rebounded yesterday as insurance stocks regained some strength, while Qatar’s biggest bank edged up after it reported solid earnings.

The main Saudi index, which had sunk 2.2 per cent on Wednesday, rose 1.4pc to 6,988 points after testing demand at lower levels. However, it remained below the 200-day average, now at 7,041 points, which it fell through this week - a negative technical signal.

Twenty-three of the 33 listed insurers rose. All but one had dropped on Wednesday because of fears of an industry shakeout caused by a regulatory crackdown.

Al Rajhi Bank, the most heavily traded stock, gained 0.8pc. Bank Aljazira, which had plunged for two days after reviving a plan for a big rights issue, rebounded 1.1pc.

Qatar’s index edged up 0.1pc as Qatar National Bank gained 0.6pc. It posted a net profit of 3.60 billion riyals ($989 million) for the three months to Sept. 30, up 5.6pc from a year ago. EFG Hermes had forecast 3.46 billion riyals and SICO Bahrain, 3.51 billion.

The Dubai index gained 0.6pc, although loss-making retail and restaurant investment firm Marka fell 2.9pc after saying shareholders had approved a plan to continue operations. The company will exit underperforming fashion and sports segments and restructure debt.

Abu Dhabi rose 0.2pc as National Bank of Ras al Khaimah surged 4.7pc after obtaining a $350 million syndicated loan, increased from $250 million, for general funding purposes.

Egypt’s index climbed 0.6pc as Arab Cotton Ginning surged 3.3pc after announcing a dividend of 0.2 Egyptian pounds per share for holders on Oct. 22.