Saudi shares surged early Tuesday, lifted by firmer oil prices and news that Saudi Arabia's second-largest telecommunications operator Mobily had secured waivers from all its lenders on breaches of loan agreements. Real estate stocks lifted the Dubai index. Etihad Etisalat (Mobily) jumped 6.7 percent after it said lenders who had not already agreed in December to waive breaches in loan terms had now done so. Rivals Saudi Telecom and Zain Saudi were up 0.8 and 1.1 percent respectively. Petrochemical shares were strong with the sub-index rising 1.9 percent, heading for its fifth straight session of gains after Brent crude oil hit another high for this year. Saudi Basic Industries, the largest petrochemical producer, rose 0.9 percent. The main index was up 1.0 percent. In Dubai the index added 0.6 percent with Arabtec climbing 0.7 percent to 1.46 dirhams after it said its June 1 general assembly would aim to approve a plan to use "all the statutory reserve to extinguish part of the company's losses". It gave no details. Arabtec has reported losses in the past six quarters, which it blamed on increased costs and tough market conditions. In the last few days analysts at Deutsche Bank cut their price target for Arabtec stock to 1.11 dirhams from 1.14 dirhams while maintaining a "hold" rating, and EFG Hermes raised its target to 1.13 dirhams from 1.07 dirhams while keeping a "sell" rating. Blue chip Emaar Properties jumped 2.3 percent. Vodafone Qatar dropped 3.5 percent after the company reported a net loss of 180 million riyals ($50 million) in the latest quarter, versus a loss of 66 million riyals a year earlier. Doha's main index was down 0.03 percent. Source: Reuters
