Saudi Basic Industries Corp (SABIC), the world’s largest chemicals producer, rose on Wednesday despite its quarterly profit trailing estimates, while earnings euphoria on Emaar Properties lifted Dubai’s bourse to a new 10-week high.
SABIC’s shares, which were seen as oversold, climbed 0.6 percent to 86.75 riyals, taking their gains to 1.8 percent since July 15’s 16-month low.
SABIC’s second-quarter profit fell 35 percent to 5.3 billion riyals ($1.41 billion). Analysts polled by Reuters on average forecast SABIC would make a quarterly profit of 6.58 billion riyals.
It declared a 2-riyals per share dividend for the first half of 2012, which helped to lure back investors.
“The decline in net income is attributable to weak prices and higher feedstock costs… which offset the impact of increased production and sales volumes,” NCB Capital wrote in a note. “We believe the low 80-riyals range provides a good entry point for long term investors.”
Samba Financial Group, the kingdom’s second-largest listed bank by market value, climbed 2.5 percent after it proposed a dividend of 0.8 riyals ($0.21) per share for the first half of 2012.
The main index rose for a first session in four, climbing 0.6 percent to ease away from Tuesday’s three-week low.
In the UAE, foreign institutions bought into Emaar ahead of its earnings. Its shares climbed 0.9 percent to its highest finish since April 24.