Bourses in Saudi Arabia and Egypt recovered earlier losses and edged higher yesterday as crude prices bounced back, while other major Gulf stock markets slid. 
Brent climbed 82 cents over $30 a barrel at 1218 GMT yesterday, lifted by hopes that Opec and non-Opec producers may be edging closer to a deal to tackle one of the biggest supply gluts in decades. 
Traders and managers in the region believe that if Brent prices break below $30 - the new psychological barrier most investors are eyeing - then bourses will remain vulnerable to further declines. 
The Saudi index reversed earlier declines in the final hour of trade, as crude prices bounced back over $30, closing at 5,637 points, or up 0.5%. 
The petrochemical sector helped support the bourse higher, the sub-sector index traded up 0.6%, trimming its 2016 losses to 18.2%. 
Petrochemical producer Saudi Basic Industries (Sabic), the largest stock by market value on the bourse, climbed 1.2%. 
But low oil price is hitting consumer spending in the kingdom. Households’ disposable income is slowing, said Muhammad al-Agil, chairman of Jarir Marketing Co. 
Jarir fell 2.4%. The electronics and stationery seller was the first Saudi retailer to report quarterly reports, and it posted a net profit flat to the previous year. 
“We lowered our earnings estimates (for Jarir) for 2016 onwards based on decelerating growth in estimated consumer non essential spending,” said a note by Saudi’s Aljazira Capital. But they maintained a ‘buy’ recommendation on the stock because it is trading at an attractive valuation and dividend yield. 
The retail sector edged up 0.3%, skimming its losses this year to 25.8%. The broader Saudi stock market has fallen 18.4% in 2016. 
Othaim Markets proved to be the most resilient in that area and recorded 19% year-on-year growth in sales in the fourth quarter, said a note by Kuwait’s NBK Capital. 
“We believe that Othaim’s focus on basic necessities makes it best positioned to withstand economic headwinds,” added the note. The stock gained 3.8%. 
In the UAE, the Dubai exchange and Abu Dhabi’s index slipped 0.2 and 0.4% respectively, taking each of their 2016 losses to more than 11.0%. 
Dubai Investments and Emaar Properties, two companies primarily engaged in real-estate development, fell 2.6% and 0.2% respectively. 
Abu Dhabi’s Union National Bank tumbled 8.6%. The fifth largest lender in the emirate by assets on Monday posted a 55% drop in fourth-quarter net profit. The company also proposed a cash dividend of 0.20 dirhams per share for 2015, 20% lower than the cash payout the previous year. 
Egypt’s main index edged up 0.1% to 5,897 points, 98 points off a session low. Both Egyptian and non-Egyptian Arab traders were net buyers of share, bourse data showed. Orascom Telecom, a stock favoured by both local and regional investors, traded up 1.8%. 
Another telecom operator Global Telecom surged 7.10%. Trading patterns suggest that the spike in the stock’s price could be attributed to a single-ticket transaction. 
Elsewhere in the Gulf, Oman’s index fell 0.6% to 4,934 points; Kuwait’s index slid 0.03% to 4,937 points, while Bahrain’s index added 0.5% to 1,156 points.