Gulf pulls back as global markets stay fragile; foreigners buy Egypt

* Saudi trading turnover falls by more than a third
    * SABIC, Alinma Bank fall back sharply
    * Some smaller stocks such as Bupa Arabia still bought
    * Ooredoo buoys Qatar's market
    * Blue chips sought in Egypt

    By Andrew Torchia
    DUBAI, Aug 26 (Reuters) - Most Gulf stock markets fell back
on Wednesday as the region consolidated after a strong rebound
on Tuesday, while foreign investors' bargain-hunting in blue
chips lifted Egypt.
    The Gulf's bounce on Tuesday, after several days of sharp
falls, created a sense that markets in the region have found at
least short-term floors. Some institutional investors came back
into the markets to buy selected stocks with valuations that
they now saw as reasonable.
    But with global oil prices and equities still unstable and
the economic outlook for China unclear, fund managers do not
have any confidence that Gulf bourses have bottomed for the
longer term.
   So the Saudi stock index, which had surged 7.4
percent on Tuesday, fell back 2.1 percent on Wednesday. Trading
volume, which had jumped on Tuesday to its highest level since
May 2014, shrank by more than a third.
    Petrochemical producer Saudi Basic Industries,
which had jumped its 10 percent daily limit on Tuesday, pulled
back 4.1 percent. Alinma Bank, which had also gained
10 percent, slipped 3.7 percent.
    Selling was not indiscriminate, however, and there was
continued bargain-hunting in some second- or third-tier stocks,
such as healthcare provider Bupa Arabia, up 2.8
percent.
    Dubai's stock index, which had jumped 4.6 percent
on Tuesday, fell back 1.4 percent. Real estate shares that had
surged on Tuesday saw selling, with Emaar Properties 
down 1.7 percent and DAMAC Properties off 4.4
percent.
    Abu Dhabi edged down 0.1 percent as Aldar Properties
, which had added 7.0 percent on Tuesday, pulled back
5.3 percent. However, telecommunications blue chip Etisalat
 gained 0.8 percent.
    Qatar's market bucked the trend and continued to
rise, gaining 0.5 percent. Telecommunications firm Ooredoo
, widely seen as a defensive stock with an attactive
dividend yield, was a major reason for the index's rise, gaining
3.3 percent.
    Egypt's index .EGX30, which had risen 2.8 percent on
Tuesday, climbed a further 0.5 percent as Qalaa Holdings
, one of the country's largest investment firms, rose
4.7 percent. Real estate blue chip Palm Hills Development
 added 2.1 percent.
    Exchange data showed non-Egyptian Arab investors were net
buyers by a large margin and other foreign investors were also
buyers.    
        
    WEDNESDAY'S HIGHLIGHTS
    
    SAUDI ARABIA
    * The index fell 2.1 percent to 7,384 points.
    
    DUBAI
    * The index slid 1.4 percent to 3,507 points.
    
    ABU DHABI
    * The index edged down 0.1 percent to 4,330 points.
    
    QATAR
    * The index rose 0.5 percent to 10,958 points.
    
    EGYPT
    * The index climbed 0.5 percent to 6,873 points.
    
    KUWAIT
    * The index fell 0.4 percent to 5,814 points.
    
    OMAN
    * The index edged up 0.4 percent to 5,782 points.
    
    BAHRAIN
    * The index edged down 0.1 percent to 1,303 points.