Middle East stock markets end high

Petrochemical stocks lead gains as Saudi Arabia's bourse closes at a nine-month high in heavy trade, with investors bullish on the local economy.

The index gained 0.6 per cent to 6,870 points, its highest close since May 4.

Bellwether Saudi Basic Industries Corp (Sabic) was the main support, rose 0.5 per cent.

Rival producers Advanced Petrochemical added 2.5 per cent, Saudi International Petrochemical climbed 1.2 per cent and Methanol Chemicals surged 9.9 per cent.

"The mood is very positive in Saudi - development projects are seeing progress and it's not just on paper anymore," says Farouk Miah, Acting Head of Research at NCB Capital.

The highest turnover was in the insurance sector, which eased 0.09 per cent.

"There is a continuation of renewed interest in market but because a lot of it is in speculative names, in itself that's not good because there will be a correction on those names," adds Miah.

Real estate stocks gain in Dubai, Abu Dhabi

Dubai's bourse made its largest one-day gain in 11 months to reach its highest close since June as buying momentum continues on upbeat market sentiment.

Dubai's index climbed 3.6 per cent to 1,571 points, resuming a rally that began in mid-January and taking its year-to-date gains to 16 per cent.

Bellwether Emaar Properties gained 3.9 per cent, Dubai Financial Market jumped 7 per cent and Air Arabia gained 6.5 per cent.

Regional sentiment is supported by gains in world stocks, which hit a 6-1/2-month peak on Friday on hopes that Greece will seal a long-awaited bailout deal this week.

Analysts are expecting Dubai's market to consolidate at these levels with some profit-taking in the coming sessions.

"The market is in an overbought situation technically but valuations are still distressed," says Fadi Al Said, head of investments at ING Investment Management. "UAE economy is faring better than what the market was telling us, things are stabilising and we've had some good corporate earnings."

In Abu Dhabi, the index ticked up 0.6 per cent to close at 2,489 points.

Dana Gas jumped 6.8 per cent, Sorouh Real Estate surged 5.1 per cent and Aldar Properties gained 3 per cent. Together, these stocks accounted for more than half of all shares traded.

Kuwait, Qatar index end high

Kuwait's benchmark made its largest one-day gain in 11 months, reaching a seven-month closing high as local investors pick up small-cap stocks.

The index gained 1.7 per cent to 6,083 points, its highest close since July 26.

"We're going to stay within the retail gains... the investor base is Kuwaiti locals from medium to high net-worth individuals," says a Kuwait-based trader who asked not to be identified.

The buying is not reflective of company fundamentals, however.

"You have crazy valuations in companies that are not worth their valuations," he adds.

Small-caps surge with Al Safwa Group was up 9.4 per cent, Al Ahlia Holding jumped 16.7 per cent and Gulf Finance House climbed 7.8 per cent.

Elsewhere, Qatar's benchmark rises from Thursday's two-week low, gaining 0.9 per cent to close at 8,623 points.