Dubai: Monday's trading at the Saudi stocks exchange saw Savola edging away from Sunday's 12-month low, helping the kingdom's index advance.

The food producer rose 0.3 per cent, trimming its losses to 6.7 per cent since it reported a quarterly profit of 2 million riyals (Dh1.95 million).

Dairy producer Almarai, a Savola affiliate, climbed 0.2 per cent. Its shares had also slipped after quarterly profit fell short of estimates.

Bellwether Saudi Basic Industries Corp advanced. "Petrochemicals have over-shot. Sabic reached near 113 and then came back to more realistic levels," says a Riyadh-based trader who asked not to be identified.

In Doha, Commercial Bank of Qatar surged despite the lender reporting below-forecast fourth-quarter earnings, with the stock seen as cheap compared to market leader Qatar National Bank.

Two-year high

In Kuwait, Kuwait Finance House hit a two-year high as traders bet the lender may announce a capital increase priced at a big discount to its current share price.

KFH climbed 1.6 per cent to its highest finish since December 24, 2008.

"Many people expect KFH to make a capital increase and that this will be cheap," says Eisa Al Hassawi, assistant manager at Zumorroda Investment Co in Kuwait.

He says market talk is for a KFH capital increase to be priced at 0.4 to 0.5 dinars per share. In February 2010, KFH's chief executive said the bank was not considering a capital increase "for the time being". Other banks also prospered. NBK climbed 1.4 per cent and Gulf Bank added 1.8 per cent.

In Muscat, National Bank of Oman fell after its fourth-quarter profit missed estimates, sparking a market-wide sell off that pushes Muscat's index to a two-week low.

NBO's quarterly profit fell 16 per cent. Its shares and those of BankMuscat each ended 0.6 per cent lower, while Oman International Bank lost 1.8 per cent. Renaissance Services dropped 1.2 percent.

Egypt's main index advanced, led by Orascom Construction Industries after the builder announces it won an 800 million Egyptian pounds (Dh518.59 million) in work at Emaar projects in Egypt. Volume is low, with investors cautious ahead of possible mass protests called in Egypt. "The market lacks confidence, especially for tomorrow and about the events on the street," says Mohammad Radwan of Pharos.