Most Gulf markets rise, Dubai rally stalls

Abu Dhabi's bluechips lifted the emirate's index to a four-month high as they played catch-up to early-year gains on other Gulf markets, but Dubai's rally stalled as investors booked profits in large-cap stocks.

Heavyweight National Bank of Abu Dhabi was the main support, rose 1.4 per cent, while First Gulf Bank climbed 0.8 per cent.

Sorouh Real Estate and Dana Gas jumped 4.8 and 4.3 per cent respectively.

The UAE capital's index climbed 0.6 per cent to 2,504 points, its highest close since October 30.

In Dubai, the index slipped from Sunday's eight-month peak. Dubai Islamic Bank fell 1.4 per cent, Emirates NBD slipped 0.7 per cent and telecom operator du shed 1.3 per cent.

"The momentum is stretched and we had no news to fuel this rally - I would not be surprised to see 2 to 3 per cent come off the market in coming days," says Sebastien Henin, portfolio manager at The National Investor.

"The overall picture - whether it is global markets or oil - is good, but from a momentum point of view we need a break. Even if there is positive news from elsewhere, the market will not avoid a correction."

Qatar, Kuwait index end high

Qatar's benchmark extended gains, rose 0.3 per cent to close at 8,650 points.

The market is lagging its regional peers with year-to-date losses at 1.5 per cent.

In Kuwait, the rally extended, with the index ended 0.5 per cent higher at 6,115 points, its highest close in seven months.

Sabic gains in Saudi

Saudi Arabia's index reached a 21-month closing high, neared a psychologically-important resistance level as volumes surged in bluechip stocks.

The benchmark climbed 0.3 per cent to 6,895 points, its highest finish since May 2010.

Saudi Basic Industries Corp (Sabic), the world's largest chemicals company, gained 1.3 per cent, was the main support for the market. Volumes traded in the stock jump to their highest in six months.

"The Saudi index is on course to break out of a three-year rut and finally breach the psychologically important 7,000 level," says a Riyadh-based trader who asked not to be identified. "The extra cash that has been deployed in the market recently is critical to get past resistance barriers."

The focus has shifted from small-cap, speculative stocks towards bluechips and heavyweights.

"I feel this trend will pick up steam, attract further cash flows from local investors, and catapult the market to the next level," the trader adds.

Heavyweight Al Rajhi Bank gained 1 per cent, Saudi Electricity rose 1.4 per cent and Saudi Arabian Mining (Maaden) climbed 3.5 per cent, all trading high volumes.