(Corrects to say that Egypt was shut for a holiday, not trading)
* Eid holidays may coincide with U.S. political crisis
* Saudi dips as much as 1.7 pct, then recovers
* Dubai eases after index posts negative momentum divergence
* Gulf Finance House soars as chairman steps down
* Dubai’s Islamic shares mixed after government plan announced
By Olzhas Auyezov
DUBAI, Oct 6 (Reuters) - Gulf markets were mixed on Sunday as investors were cautious ahead of third-quarter earnings reports and Eid holidays that could coincide with major developments in the U.S. government’s crisis over its funding and debt ceiling.
Saudi Arabia’s bourse sank as much as 1.7 percent on what traders said was pre-holiday profit-taking, before closing down just 0.2 percent.
Gulf markets will be wholly or partially closed next week for Eid al-Adha, with Saudi Arabia shut for the entire week. While most investors are not gravely worried by the U.S. political turmoil, expecting it to be resolved before major damage is done to the U.S. economy or markets, the holidays will leave them exposed during a critical period.
Shares in Saudi dairy producer Almarai slipped 0.5 percent after its third-quarter net profit fell marginally short of analysts’ estimates.
Saudi retailer Jarir Marketing, on the other hand, climbed 0.8 percent after reporting results that were slightly better than estimates.
In Dubai, the main index fell 0.3 percent to 2,815 points after after 14-day momentum posted a negative divergence - a classic technical sign of a pause in an uptrend. The index has immediate chart support around 2,750 points, where it peaked in August.
The government’s plans to boost the Islamic finance sector, announced on Saturday, had a mixed effect on stocks in the sector. Dubai said it would focus on developing its Islamic re-insurance sector, which it believes has lagged the growth of Islamic insurance.
Dubai Islamic Bank gained 0.8 percent and Dubai Islamic Insurance and Reinsurance Co was up 1.0 percent. But Dar Al Takaful fell 1.2 percent and Takaful Emarat was down 2.8 percent.
Shares in Gulf Finance House jumped after it announced the departure of chairman Essam Janahi and named Ahmed al-Mutawa named as his replacement. The Bahrain-listed shares rose 7.7 percent, the Kuwait listing was up 6.5 percent and in Dubai, the stock surged 10.6 percent.
The Egyptian market was closed for a public holiday on Sunday.
* The index slipped 0.2 percent to 8,003 points.
* The index fell 0.3 percent to 2,815 points.
* The index rose 0.3 percent to 3,868 points.
* The index gained 0.4 percent to 7,655 points.
* The index fell 0.3 percent to 9,732 points.
* The index rose 0.1 percent to 6,656 points.
* The index edged up 0.01 percent to 1,194 points. (Editing by Andrew Torchia)