(Updates with market rebounding)
DUBAI, Sept 29 Saudi Arabia's stock market
rebounded in afternoon trade on Thursday on the back of
petrochemical stocks, which rallied in response to OPEC's
production deal to restrain output and prop up oil prices.
The main Saudi index dropped as much as 1.0 percent
in early trade, continuing a slide triggered by this week's
announcement of austerity measures including cuts to civil
service bonuses and allowances. In the previous two days, it had
lost 7.1 percent.
But petrochemical firms, their profit margins closely tied
to oil prices, began recovering on Thursday afternoon after
Brent oil surged above $48 a barrel overnight because of
the OPEC deal. The largest petrochemical producer, Saudi Basic
Industries, gained 2.6 percent while the main index
added 1.5 percent.
This encouraged buying-back of a range of stocks, with
Alinma Bank climbing 3.2 percent.
News that the U.S. Congress overwhelmingly rejected
President Barack Obama's veto of legislation allowing relatives
of victims of the Sept. 11 attacks to sue Saudi Arabia was
negative, but bankers said it would have little impact on the
markets because the economic implications for Riyadh, if any,
were not yet clear.
Dubai's stock index closed 0.6 percent higher with
gainers outnumbering losers 17 to nine. Dubai Parks and Resorts
, which is due to open its amusement parks next month,
added 0.6 percent and Emaar Properties rose 1.4
In Qatar, the main index ended 0.3 percent lower as
Qatar National Bank which had led advances in the
first hour of trade, slipped 0.1 percent.
(Reporting by Celine Aswad; Editing by Andrew Torchia)