* Saudi petchems lead market up
* Emaar, The Economic City jumps on sovereign fund interest
* Property shares support Dubai, Abu Dhabi before exhibition
* Dubai's volume at four-month high
* Shuaa Capital surges daily limit
By Celine Aswad
DUBAI, Sept 5 Saudi Arabia's stock market posted
its biggest daily gain in four months on Monday as oil prices
surged, while shares of Dubai's property developers rose before
a major exhibition for the industry this week.
Riyadh's stock index rose 1.7 percent to 6,204
points, and trading volume grew by more than half, as Brent
crude futures jumped almost 5 percent before a news
conference at which Saudi Arabia and Russia said they would
cooperate in oil markets.
The two countries said they would not act immediately, and
many analysts doubt the agreement will make much difference to
oil prices in the long run. But oil's surge was enough to boost
Saudi petrochemical shares, with bellwether Saudi Basic
Industries gaining 2.7 percent.
Also aiding sentiment was a purchasing managers' survey that
showed growth in Saudi Arabia's non-oil private sector hit a
12-month high in August, suggesting the economy may be
stabilising after a slowdown driven by low oil prices and
government austerity measures.
The positive mood spilled into other sectors. Saudi British
Bank jumped 4.8 percent to 19.80 riyals.
"The market seems to be bouncing from 6,000 points,
supported by developments in the oil market. Over the last
several weeks, the market has been pricing in negative economic
expectations, and the recovery in oil is a nice positive
surprise," said Mohammad al-Shammasi, chief investment officer
at Riyadh-based Derayah Financial.
Some banks, depressed by concern about Saudi Arabia's
economic slowdown and the threat of bad debt in the slumping
construction sector, are trading below what analysts consider to
be fair value. SABB, for example, is at a 21 percent discount to
the mean target price of 10 analysts polled by Reuters.
Emaar, The Economic City surged 4.5 percent in
unusually heavy trade. The stock is now up 8.2 percent since
Sunday, when Reuters quoted a source as saying Saudi Arabia's
top sovereign fund, the Public Investment Fund, was in talks to
invest in King Abdullah Economic City, the huge project being
developed by EEC.
Middle East Healthcare Co added 5.0 percent after
saying Saudi tax authorities have agreed to its request for a
13.6 million riyal ($3.6 million) tax credit.
PROPERTY PROPELS DUBAI
Other Gulf markets closed on Monday before oil prices took
off, but Dubai edged up 0.3 percent in the highest
volume for four months. Cityscape, the property exhibition which
will open in Dubai on Tuesday, offers companies a platform to
announce new projects and contract awards.
Union Properties, the most heavily traded stock on
the exchange, gained 4.0 percent. Deyaar Development
rose 1.8 percent after saying it had started work on a Dubai
Shuaa Capital surged 15.00 percent, its daily
limit, to a 16-month high. Shares in the investment firm have
gained 22.6 percent since Thursday, when Nasdaq Dubai began
trading single-stock futures on shares in some of the United
Arab Emirates' biggest companies. Shuaa is providing
At an event hosted by Nasdaq Dubai on Monday, brokers who
have been trading the futures said transactions had been running
smoothly so far, though volumes were expected to remain low for
now as most institutional investors were still on the sidelines.
In Abu Dhabi, the index rose 0.9 percent as some
property developers advanced. Aldar Properties, which
is exhibiting at Cityscape and reported strong demand for its
Yas Acres development, added 1.5 percent.
Qatar's main index edged down 0.1 percent as half of
traded stocks pulled back. Qatar Gas Transport, the
biggest loser, dropped 1.3 percent.
In Egypt, the main index added 0.4 percent in thin
trade, with a little over a quarter of shares advancing. Global
Telecom Holding, a stock favoured by foreign traders,
climbed 0.5 percent.
* The index rose 1.7 percent to 6,204 points.
* The index edged up 0.3 percent to 3,546 points.
* The index rose 0.9 percent to 4,512 points.
* The index added 0.4 percent to 8,271 points.
* The index slipped 0.1 percent to 10,840 points.
* The index slipped 0.3 percent to 5,381 points.
* The index rose 0.4 percent to 5,749 points.
* The index fell 0.5 percent to 1,135 points.
(Editing by Andrew Torchia, Larry King)