Gulf markets end mixed

Gulf stocks markets ended mixed as the euro and European shares are down on nerves Greek would fail to come up with the political commitments needed to avoid a potential sovereign debt default taking the shine off a US jobs report that had brightened the global economic outlook and lifted Asian shares in early trade.

Saudi Arabia's index ended lower for a first session in 11 to retreat from the previous day's 12-month high, although institutional interest remains strong.

Zain Saudi dropped 2.7 per cent, Saudi Basic Industries Corp (Sabic) falls 0.3 per cent and Al-Rajhi Bank loses 0.7 per cent.

The index slipped 0.3 per cent to 6,739 points.

"Saudi Arabia is generating more and more interest among institutional investors," said Julian Bruce, EFG-Hermes director of institutional equity sales.

"It has a very broad and liquid market and we're seeing more encouraging stories coming out of Saudi.

"We're supposedly getting closer to Saudi becoming fully operational for foreign activity, while the economy is in pretty good shape and getting more interest from Western institutions."

The kingdom's economy is forecast to grow 4 per cent in 2012, having expanded by an estimated 6.7 per cent last year, according to a Reuters poll.

Qatar rebuilds position, ends higher

Qatar's index ended higher for a ninth session since late-January's three-month low as traders shrug off their disappointment over bank dividended to accumulate shares at lower prices.

Qatar National Bank (QNB) climbed 0.4 per cent, trimming its losses to 2.2 per cent since Jan. 9 when it said it would pay a 40 per cent cash dividend.

"Local investors were disappointed with some of the dividend announcements, which caused the market to sell off," says Julian Bruce, EFG-Hermes director of institutional equity sales.

"It's now in partial recovery mode as people shrug off this disappointment and rebuild positions."

Doha Bank and Qatar Telecom (Qtel) add 1.4 and 0.7 per cent respectively.

The index edged 0.03 per cent higher to 8,726 points.

"Overall, the Qatar story remains fairly solid, but market upside is limited," added Bruce.

"Most Western institutions invested in Qatar equities are already overweight and any further adding to positions will be fairly limited."

UAE stocks mixed

Dubai's Arabtec made its largest in nearly two years to reach a 27-month closing high, dominating trade on the emirate's index.

Arabtec rose 9.2 per cent to its highest level since November 2009 and accounts for more than a quarter of all shares traded on the benchmark.

But there is no fundamental news on the builder, which is forecast to report a 55 per cent drop in fourth-quarter profit according to analysts polled by Reuters.

"I must have asked 50 people what is going on with Arabtec and they all say they're clueless - a lot of volume has gone through Arabtec and it has gone up in a straight line," said Ibrahim Masood, senior investment officer at Mashreq Bank.

"The locals have been going long while offshore investors have been sellers in Arabtec."

Arabtec officials did not return calls seeking comment.

The index climbed 0.6 per cent to 1,476 points, a five-month closing high, but fails to hold above 1,500 points, which is seen by investors as an important psychological hurdle.

"These psychological levels are ridiculous really, but there are people who look at these levels and believe they are significant and that's all it takes," adds Masood.

"Retail investors have locked in some short-term gains."

Abu Dhabi's benchmark slipped 0.1 per cent to 2,475 points, easing from Sunday's 12-week high.

First Gulf Bank was the main drag, falling 0.9 per cent.

"Local investors, in particular, are expecting better news and consequently we've seen an increase in buying interest," says Julian Bruce, EFG-Hermes director of institutional equity sales. "There's still fairly limited activity from foreign institutions, which continue to treat the UAE with caution, so the majority of activity is from local investors."

Elsewhere, Kuwait's benchmark ended 0.3 per cent lower at 5,840 points.

Oman's index ended 0.07 percent higher at 5,568 points, rising for a second session since Wednesday's two-month low.