Saudi Electricity, Mobily extend gains
Saudi Electricity rises in early trade, extending gains since it reported increased quarterly profits as investors focus on domestically-driven companies. Climbing by 1.8 percent, taking its gains to 5.2 percent since posting a 50 percent jump in second-quarter profit.
Investors are focusing on the likes of Saudi Electricity, telecoms provider Etihad Etisalat (Mobily) and dairy firm Al Marai, says a Riyadh-based trader who asked not to be identified.
"These domestic names have more visibility in terms of likely earnings for the rest of 2010 compared to globally-focused companies like SABIC," he says.
Mobily is up 0.5 percent, building on Monday's 16-month high.
"There haven't been any nasty surprises in (telecoms) earnings," says Irfan Ellam, Al Mal Capital telecoms analyst.
Al Marai slips 0.1 percent as investor book gains from Monday's 11-week high.
Saudi Basic Industries Corp (SABIC) climbs 0.3 percent, recouping some of the previous day's losses that were sparked by affiliate Saudi Kayan Petrochemical Co saying it needed more money to cover a $2.4 billion rise in building costs for a new plant. Kayan adds 0.9 percent. The index climbs 0.5 percent to 6,245 points.
Industries Qatar (IQ) rises, helping Doha's index claw back a little of Monday's losses, but low volumes mean it may struggle to overcome a key resistance level.
"Trading is very quiet and investors are waiting for more second-quarter results," says Mohamed Abu Ghoush, head of equities brokerage at Ahli Bank.
"Turnover is low, but this is a normal part of the yearly trading cycle. From a technical point of view, the index is trying to break through 7,000 points and if this happens, it will become a good support level."