* Banks, telecommunications support Saudi

* Retailer L'azurde off high as it lists

* Dubai Resorts drops on Six Flags exclusivity exception

* Egypt finance-related shares underperform market

* Shares with attractive dividend yields boost Qatar

By Celine Aswad

DUBAI, June 29 (Reuters) - Most stock markets in the Gulf nudged up on Wednesday, supported by recoveries in oil and global equity prices after the shock of Britain's vote to leave the European Union last week, but turnover was small before summer and Eid al Fitr holidays.

Riyadh's index added 0.3 percent, buoyed by the banking and telecommunications sectors , with phone operator Zain KSA climbing 1.3 percent to 7.95 riyals.

NCB Capital said in a note that strong revenue growth, improving market share and margin expansion were Zain KSA's main strengths.

"The company is also expected to benefit from the reduction in interconnection charges, while capital expenditure is expected to continue with the support of the recent 2.25 billion riyal ($600 million) loan renewal," the note added. NCB is neutral on Zain shares with a price target of 9.0 riyals.

Shares in retailer L'azurde Company for Jewellery closed 7.6 percent higher at 39.80 riyals as they listed, but came off their intra-day high of 40.70 riyals. It is unusual for a Saudi stock not to end up its 10 percent daily limit on its first day of trade. The company sold 12.9 million shares in its initial public offer at 37.0 riyals per share.

Main competitor Fitaihi Holding dropped 3.0 percent. L'azurde is the first retail company to list in Saudi Arabia this year, and its stock price performance in coming months may depend on the outlook for discretionary spending in the midst of an economic slowdown due to low oil prices.

Dubai's index fell 0.4 percent, sagging in the final hour of trade as investors booked profits in small and mid-cap stocks ahead of the holidays. Islamic insurer Dar Al Takaful slumped 10.0 percent.

The most heavily traded stock, amusement park builder Dubai Parks and Resorts , dropped 3.2 percent. The company said that at the behest of Dubai's ruler, it had made an exception to its exclusive right to develop and operate Six Flags-branded theme parks in the Gulf Cooperation Council, in order to let Six Flags help Saudi Arabia build theme parks.

Abu Dhabi's index edged up 0.2 percent. National Bank of Abu Dhabi , which is in talks to merge with fellow lender First Gulf Bank , added 1.2 percent. Abu Dhabi Commercial Bank also gained 1.2 percent. Some analysts believe ADCB could merge with Union National Bank .



EGYPT, QATAR

In Cairo, the main index added 0.2 percent. El Sewedy Electric , the top gainer, jumped 4.7 percent.

But financial firms, favoured by international funds, lagged. Commercial International Bank lost 1.2 percent and investment bank EFG Hermes dropped 1.1 percent.

Doha's index nudged up 0.1 percent in the final hour of trade as investors bought shares with attractive dividend yields ahead of second-quarter corporate results. Doha Bank gained 1.6 percent; the lender has a 12-month forward dividend yield of 7.7 percent, according to Reuters data.

WEDNESDAY'S HIGHLIGHTS



SAUDI ARABIA

* The index edged up 0.3 percent to 6,500 points.



DUBAI

* The index lost 0.4 percent to 3,271 points



ABU DHABI

* The index added 0.2 percent to 4,417 points.



EGYPT

* The index gained 0.2 percent to 6,943 points.



QATAR

* The index edged up 0.1 percent to 9,878 points.



KUWAIT

* The index was unchanged at 5,375 points.



OMAN

* The index added 0.3 percent to 5,780 points.



BAHRAIN

* The index advanced 0.4 percent to 1,118 points.

(Editing by Andrew Torchia) ((celine.aswad@thomsonreuters.com; +971 562 247 653 Reuters Messaging: celine.aswad.thomsonreuters.com@reuters.net))