MIDEAST STOCKS-Saudi, Egypt up in early trade as oil rises

DUBAI – Stock markets in Saudi Arabia and Egypt rose in early trade on Thursday as a second day of rising oil prices helped to revive risk appetite.

Riyadh’s index traded up 1.7 percent to slightly above 6,000 points, lifted by the petrochemical sector. Saudi Basic Industries, the largest petchem by market value, jumped 3.0 percent.

However, strength in Saudi stocks late on Wednesday was accompanied by lower trading volumes, suggesting the index is still in an adjustment phase, said a note by Riyad Capital.

Unless momentum builds enough for the index to close over the 6,000-6,100 point band, the adjustment phase will continue, it added.

Jarir Marketing rose 2.7 percent after the retailer proposed a cash dividend of 1.95 riyals per share for the fourth quarter of 2015, 5 percent higher than the payout in the same period of 2014.

Bank Aljazira advanced 3.9 percent after the lender announced it had booked a capital gain of 208.6 million riyals ($55.6 million) from selling a plot of land in Jubail. The gain will be reflected in financials for the first quarter of 2016, it said.

Egypt’s benchmark was up 0.7 percent to 6,106 points in modest volume. Palm Hills Development and investment bank EFG Hermes each rose more than 2.0 percent.

Technical analysts at Cairo-based Pharos Research said this could be an opportunity to enter the Egyptian market.

“We think that any break above the 7,100 level – which is the resistance line – would be a confirmation of a bullish rally.”