Amwal Al Ghad - 2012-10-24 14:59:39
Saudi Arabia's bourse rebounded on Wednesday from a nine-day low as bargain hunters picked up battered stocks, while Dubai's Emaar Properties declined after quarterly earnings missed estimates.
Most sectors in Saudi Arabia rallied, with large-caps Saudi Basic Industries Corp and Al Rajhi Bank gaining 0.9 percent and 1.1 percent respectively.
Dar Al Arkan rose 1.2 percent, accounting for a quarter of all shares traded on the index.
"The market did not react (over the last two weeks) to the positive earnings growth we saw in the third quarter - we expected to see it recover a bit," said Hesham Tuffaha, head of asset management at Bakheet Investment Group.
"The Saudi market is extremely undervalued compared to global equity markets and the emerging markets. In the short term, the market will be volatile until there is a clear direction in global markets. But long-term, the market is attractive and we could see it at much higher valuations."
The kingdom's index rose 0.9 percent, extending year-to-date gains to 5.8 percent.
Saudi Arabia's stock exchange will be closed for Eid al Adha holidays and resume trade on Nov. 3.
In Dubai, Emaar Properties fell 1.9 percent, dragging the emirate's bourse to a nine-day closing low. The developer posted a 4.7 percent drop in third-quarter net profit to 387 million dirhams, well below the average analyst forecast of 516.2 million dirhams.
The index fell 0.5 percent to 1,641 points, its lowest finish since Oct. 15. More»