DUBAI: Egypt’s Pioneers Holding surged after announcing plans to merge with an unlisted investment bank, helping the Cairo bourse to a higher close, while a sharp correction in Saudi Kayan Petrochemical shares weighed down the Saudi benchmark.

Dubai and Abu Dhabi markets reversed some of last week’s losses. Qatar also gained, while Oman and Kuwait logged losses.

Egypt’s Pioneers Holding closed 5.7 percent higher after jumping more than 9 percent in earlier trading after it said it would merge with Beltone Financial. Egypt’s main index rose 1.95 percent to 6,680 points.

Saudi Kayan Petrochemical Co., one of the most heavily traded stocks on the Saudi index, ended the session 7.5 percent lower.

“Kayan was worst hit, probably because of the stellar run it has had in the past few weeks and therefore it was most heavily punished today,” said Fouad Dajani, vice president at Credit Suisse Saudi Arabia.

Kayan’s shares surged 43 percent from the end of August to reach a 14-month closing high on Wednesday. The Saudi benchmark TASI, which also came under pressure from banking stocks, slipped 1.5 percent to 6,256 points. Banque Saudi Fransi and Samba Financial Group retreated 1.9 and 2.8 percent.