By Matt Smith
UPDATE 6: Telecoms operator Zain drags Kuwait's KWSE lower while Saudi also falls.
Selective buying by investors in Dubai and Abu Dhabi lead both benchmarks
and ADI to end higher on Tuesday.
Real estate heavyweight
jumped 3.8 percent in Abu Dhabi. Banks also saw buying activity.
rose 2.3 percent and
Dubai Financial Market (DFM)
added 2.2 percent, lifting the index, which ended higher for a third trading day as volumes increase 75 percent from the day before.
"The gains are nothing to do with fundamental news in the market," said Chamel Fahmy, senior regional sales trader at Beltone Financial.
"We expect the market to continue like this unless there is major news that might change this situation, for example, on
Dubai's index ended 0.7 percent higher at 2,170 points and Abu Dhabi rose by the same margin to end on 2,968 points.
Saudi Basic Industries (SABIC)
fell, pulling the Saudi benchmark to a lower close.
declined 1.5 percent, after gains on Monday.
Oil prices fell slightly on Tuesday, but held above $79 a barrel, and US stocks fell in early trading after the market hit a 13-month high on Monday.
The index closed 0.6 percent lower at 6,239 points.
Kuwaiti telecoms operator
dragged the index KWSE which ended lower for a second consecutive day.
dived seven percent after the chief executive said on Monday that revenues will be lower than forecast for 2009. Uncertainty about the company's future also continued to concern investors.
"Kuwait will underperform because its financial sector is in deep distress and there's no clarity as to how it will get out of this," says Shakeel Sarwar, Sico investment bank head of asset management.
The benchmark KWSE ended 0.2 percent lower at 7,255 points.
Other Gulf Arab markets put in a mixed performance, as Qatar's index QSI ended higher, but Bahrain BAX declined.
jumped 1.9 percent, and
Qatar Gas Transport (Nakilat)
rose 1.7 percent, to lift the index 0.6 percent higher to 7,055 points.
Bahrain fell 0.7 percent to 1,488 points.
Oman's index MSI ended marginally lower on Tuesday, as banking stocks weighed.
, the country's largest bank, fell 0.2 percent and
National Bank of Oman
slipped 0.6 percent.
"We're neutral to positive on Oman - it doesn't depend as much on oil revenues and the infrastructure spending the government is doing will help the financial sector as well as other sectors of the economy," says Shakeel Sarwar, Sico investment bank head of asset management.
The index ended 0.03 percent lower at 6,290 points. (Reuters)