Qatar’s index rose 0.7 percent to 8185 points, ending a three day downward slide, with traders expecting improved market performance after the end of the financial year.
Market sluggishness is seen continuing until the end of the financial year in what has been the Middle East’s best performing benchmark in 2010.
“This month is the end of the financial year, so listed companies will close their positions … and maybe they will give investors their expectations for the dividends for this year,” said Hani Girgis, assistant chief dealer, Dlala brokerage.
“Most investors expect it will be better than last year…and I think it will be better in coming weeks,” he added.
Kuwait’s Zain fell 2.9 percent on the day, after a shareholder filed a lawsuit to halt due diligence in a planned $12bn stake sale to Abu Dhabi’s Etisalat.
Zain closed at 1.36 dinars and Kuwait’s index fell 0.5 percent to 6818 points, on concerns over the deal and a drop in institutional buyers in the Kuwait market.
The Kharafi group has led a 46 percent stake sale in Zain to Etisalat. The Abu Dhabi firm has agreed to pay 1.7 dinars per share, but the deal will not be done on a pro rata basis, leading to objections from other shareholders, including Al Fawares Holding, which has filed a lawsuit against opening the firm’s books to Etisalat, board member Khalifa Ali al Khalifa al Sabah told Reuters on Wednesday.
Other Kharafi linked firms also declined and National Industries Group lost 1.5 percent and National Investments Co dropped 1.2 percent.
“Trading volume has been dramatically decreasing this week because of anticipation over the deal and people are yet unsure what to do, and whether it will happen or not,” one Kuwait trader said.
“We’re lacking in the last couple of days institutional buying from government supported entities or other institutions in general,” he added.
Oman’s index rose 0.4 percent to hit a seven month high at the close on the back of upbeat sentiment in the global markets and growing foreign investment in the Omani market.
Omani index closed at 6664 points, its highest since May 25.
Some traders say they believe the uptrend will continue.
“I believe the market is going towards the 6,700 level,” said Adel Nasr, a brokerage manager for United Securities.
“We believe the current scenario is going to continue for a while. Sentiments are very high, and accumulation from foreign institutions on our blue chips is at the highest level currently since 2008,” he said.
The financial service sector is the highest gainer, with Financial Services Company leading, up 3.6 percent. Oman Investments and Finance followed as the second highest gainer, rising 2.07 percent.
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