Arabtec soars 15% as most Gulf markets rise

MARKETS GAIN: Most Gulf bourses traded higher on Tuesday following the bailout of Citigroup by the US government. (Getty Images)

Arabtec Holding shares soared 14.97 percent in Dubai on Tuesday after the company said it was studying the possibility of raising its capital through issuing bonus shares.

The construction giant led gains across most of the Gulf as investors took comfort from strength in global bourses following the US government's rescue of Citigroup.

"The capital raise will solidify its balance sheet and will give the company more firepower for future acquisitions," Rami Sidani, head of MENA investments at Schroders Investment Management, said of Arabtec.

Dubai's index closed 2.62 percent higher at 1,862 points.

In Abu Dhabi, Arkan Building Materials Co. climbed 9.83 percent as the emirate's benchmark closed 1.08 perecnt higher at 2,730 points.

Saudi Arabia's bourse gave up earlier gains to close lower as investors booked profits following a strong performance on Monday.

Banks led an early rally before the market was sold off, closing 0.86 percent lower at 4,490 points.

Saudi Basic Industries Corp. (SABIC) shed 2.15 percent and Banque Saudi Fransi 3.88 percent.

Oman's stock market closed higher on Tuesday with Oman Telecommunications Co. (Omantel) and Raysut Cement leading the advance, climbing 2.73 percent and 2.28 percent respectively.

"I believe it will be a short rally," said Adel Nasr, local brokerage manager at United Securities in Muscat.

"Confidence is still very shallow. The low volumes show that people are not quick to follow global markets. They prefer to wait and see."

Muscat's bourse ended 1.38 percent higher at 6,125 points after two trading days of falls.

Kuwait and Qatar stock markets ended higher on Tuesday tracking strength in global bourses, while Bahrain fell.

Kuwait's benchmark ended up 0.46 percent at 8,683 points after briefly falling into negative territory after the government handed in its resignation to avert a questioning of the prime minister.

Qatar's bourse closed 0.7 percent higher at 5,543 points led by Qatar Gas Transport Co. which climbed 2.09 percent.

Bahrain's main index fell 1.13 percent to 1,947 points.

Gulf stocks slumped on Monday as investors fretted about the prospects for economic and corporate profit growth with oil at $50 a barrel while concerns about the UAE's property sector hit bourses in Dubai and Abu Dhabi.

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