Saudi Arabia’s stock market edged down in early trade on Thursday after posting strong gains this week, while Egypt’s bourse was almost flat.

The main Saudi index fell 0.5 per cent as many stocks, which had led gains in the last few days, pulled back. Petrochemicals major Saudi Basic Industries fell 2.0 per cent and Samba Financial Group lost 1.7 per cent.

But others extended gains, such as property firm Dar Al Arkan, whose shares surged 7.9 per cent to 10.95 riyals, continuing a leg-up which started after it published fourth-quarter earnings on January 22.

The firm reported a 26.3 per cent fall in profit, missing analysts’ forecasts on lower income from financial instruments. But generally bullish sentiment towards the industry and the firm’s status as one of the kingdom’s largest listed developers may have offset performance concerns, said Harshjit Oza, property and banking analyst at the Cairo-based Naeem Brokerage. Naeem has a target price of 12.82 riyals.

Shares in another developer, Emaar the Economic City , jumped 2.5 per cent after its chief executive told Reuters he expected stronger demand for industrial and residential property this year.

Saudi Arabia’s largest listed property firm, Jabal Omar, added 0.6 per cent.

Egypt’s market was nearly flat, but most property stocks pulled back after rallying this week because of the pound’s gradual depreciation which, some analysts say, may boost demand for real estate.

Heliopolis Housing fell 1.0 per cent and Talaat Moustafa Group lost 0.5 per cent.

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