DUBAI Oct 4 Strong telecommunications shares
helped Saudi Arabia's stock market rebound early on Tuesday
after several days of losses, while other Gulf markets moved
The Saudi stock index, which has been tumbling
because of concern about the impact of government austerity
measures on the economy, gained 0.8 percent in the first 45
minutes of trade.
The main boost came from unusually heavy trade in the
telecommunications sector, after the government said at the
weekend that it would provide operators with "unified licences"
allowing them to offer full range of services.
It did not give details, but analysts think this will open
the industry to more competition, potentially reducing the
dominance of market leader Saudi Telecom.
Zain Saudi Arabia surged 9.6 percent, Etihad
Etisalat (Mobily) climbed 5.1 percent and Atheeb
Telecommunication was up 6.9 percent, as all three
stocks resumed trading after being suspended for two days.
Saudi Telecom, which tumbled 4.9 percent on
Monday, rebounded 1.0 percent.
Some other stocks beaten down by worries about the weakening
domestic economy in recent days saw cautious buying-back, with
Al Rajhi Bank up 2.5 percent after falling 1.5 percent
The petrochemical sector, which is exposed mainly to foreign
rather than domestic demand and outperformed earlier this week,
was sluggish, with Saudi Basic Industries trading
Elsewhere in the Gulf, Dubai's index edged down 0.2
percent to 3,403 points. It turned technically bearish on Monday
when it closed 1.9 percent down at 3,408 points, breaking
technical support on the August and September lows of
3,430-3,442 points, which becomes immediate resistance.
Aramex gained 0.5 percent after saying it had
established an e-commerce joint venture with state-owned
Australia Post, in a move that could herald a new expansion
drive by the Dubai company.
Abu Dhabi's index and Qatar both edged up 0.2
(Reporting by Andrew Torchia; Editing by Dominic Evans)