Abu Dhabi boosted by property stocks ahead of Cityscape show

FORTUNES REVERSED: Most Gulf exchanges were in positive territory on Wednesday. (Getty Images)

Property stock gains helped the Abu Dhabi index close higher as investors pumped in cash ahead of a major real estate exhibition in the emirate next week.

RAK Properties climbed 6.9 percent, while Aldar Properties and Sorouh Real Estate added 1 and 2.2 percent respectively. All three have made double digit gains this month.

"Property stocks have increased on speculation over their first-quarter results and potential new project announcements at Cityscape," said Mohammed Ali Yasin, Shuaa Securities chief executive.

"Groups of speculators are directing liquidity at certain small cap stocks to boost their share price before then selling up."

The index ended 0.6 percent higher at 2,646 points, despite volumes falling by a fifth from the day before.

Dubai's benchmark ended up 1.2 percent at 1,688 points.

Union Properties climbed 5.8 percent, but Deyaar ended flat following a 12.5 percent rise the day before. Both companies have denied persistent merger rumours.

Falling bank stocks dragged the Saudi index to a lower close, snapping a four-day rally.

The Tadawul index fell 1.2 percent to 5,377 points, with Riyad Bank dropping 2.2 percent and SABB losing 5.7 percent.

Both banks have gained more than 19 percent this month and investors are now booking profits. The move follows a similar drop in global bank stocks late Tuesday and early Wednesday.

Banks have been the big gainers on the Saudi index after positive early first quarter results in this sector.

"In March, global markets rallied more than 20 percent, but the Gulf exchanges hardly moved so it looks like our markets are playing catch-up," said Sunil Dhall, vice-president at Gulf Baader Capital Markets in Muscat.

"US markets have started to retreat, while the Saudi index, which has led Gulf markets in this rally, fell today and so it looks like the upward momentum is slowing to a halt."

Qatar's benchmark ended higher for a second straight trading day, climbing 0.5 percent to 5,234 points as volumes increased by more than a quarter from the previous session.

Qatar Islamic Bank weighed on the Doha index, falling 1.5 percent after posting a 23 percent decline in first quarter profits.

Qatar National Bank also retreated, slipping 0.7 percent, but Qatar Commercial Bank and Doha Bank offset these declines by adding 0.6 and 3.6 percent respectively.

Kuwait's index ended lower for only the second time in 12 sessions as market leader Mobile Telecommunications Co (Zain) fell 1.3 percent, but logistics firm Agility recovered early losses to close flat.

Most banks advanced, with Ahli United Bank the biggest gainer with a 7.1 percent rise.

Many analysts forecast further profit-taking on the Kuwait index following a sharp rally this month, with retail investors selling stakes in large- to mid-cap companies to invest in small cap stocks that are easier to move on lower volumes.

Bahrain's index closed higher, rising 1 percent to 1,663 points.

Oman's index closed higher for a 10th successive trading day, bolstered by a 10 percent jump in Galfar Engineering whose profits are expected to benefit from the falling cost of raw materials.

Oman's index rose 0.9 percent to close at 5,061 points.

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