DUBAI, Aug 13 (Reuters) – Saudi Arabia led other Gulf markets higher on Tuesday as most reopened after long Eid holidays, while Dubai bounced from technical support, suggesting its bull run is not yet stalling.
After a week-long break, the main Saudi index climbed 0.5 percent to 8,115 points in active turnover.
Buying was seen across a wide range of sectors; property developer Dar Al Arkan, the most active stock, gained 1.4 percent while petrochemical firm Saudi Kayan rose 2.1 percent.
In a research report, London-based Capital Economics said there were signs that the Saudi economy was picking up; it estimated year-on-year growth of 3.5 percent for the second quarter, up from 2.1 percent in the first.
“The Saudi economy has slowed sharply over the past year, primarily due to falling output from the hydrocarbon sector. However, it looks like the economy may have turned the corner in Q2,” it said.
The Saudi stock market is long-term bullish after it broke this month above the April 2012 peak of 7,944 points; that targets 8,750 points, the 61.8 percent retracement of the drop from the January 2008 high, in coming months.
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