Mideast Stocks: Saudi rebounds on financials, Dubai extends losses

Saudi Arabia's index traded 0.7% higher, offsetting its losses in the previous session, as all banking shares rose


The Saudi stock market rose in early trade on Wednesday in a boost mainly from financial stocks and a recovery in oil prices, while Dubai extended losses on falling bank and property shares.

Oil prices recovered some ground, having touched their lowest in close to a month in the previous session on fears over a weakening global economy.

Saudi Arabia's index traded 0.7% higher, offsetting its losses in the previous session, as all banking shares rose. Al Rajhi Bank added 1.4%, while National Commercial Bank rose 0.8%.

Growth in Saudi Arabia's non-oil private sector improved slightly in August as output increased, backed by stronger domestic demand, a survey showed on Tuesday.

Saudi gym network operator Leejam Sports gained 0.4% after it announced a 0.5 riyal per share dividend for the second quarter.

The Dubai index slid 0.5%, extending losses from the previous session in a downturn led by financial and real estate shares.

Dubai's largest lender, Emirates NBD, dropped 1.5% following two days of gains sparked by news that the bank had raised its foreign ownership limit to 20% from 5%.

In real estate, Emaar Properties, the emirate's largest listed developer, shed 0.8% and Damac Properties lost 1%.

Heavy oversupply in the property market, an important sector of Dubai's economy, has seen residential prices slide by at least a quarter since mid-2014.

On Monday, Dubai set up a real estate planning commission to regulate projects and avoid competition between semi-government and private firms, in a move designed to address the property slump.

Arabtec Holding gained 0.6%, however, after the contractor said it was willing to explore cooperation with Trojan Holding in the construction sector.

The Abu Dhabi index traded 0.2% higher. First Abu Dhabi Bank, the United Arab Emirates' largest lender, gained 0.5%.

The Qatari index fell 0.8%, snapping a four-session winning streak, as market heavyweight Industries Qatar lost 2.5% and Qatar Islamic Bank dropped 1.4%.

(Reporting by Maqsood Alam in Bengaluru; Editing by Dale Hudson) ((Maqsood.Alam@thomsonreuters.com;))

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