Saudi Gains Boost Markets
Most Gulf bourses advanced on Tuesday, tracking gains on the Saudi market, as confirmation that state-linked funds had been buying local shares boosted fragile investor sentiment.
Saudi Arabia's index climbed 2.1%, taking its gains to more than 14% this week, rallying from a 22-month low hit on March 2.
"The Saudi market was oversold and a bounce was expected," said Saad Al-Chalabi, a technical analyst for institutional equities at Al Ramz Securities in Abu Dhabi. "However, we are definitely seeing some government intervention, which is a key reason for the rise."
Heavyweight SABIC climbed 3.6% and Al-Rajhi Bank gained 4.5%. However, concerns over regional unrest remained especially among foreign investors.
Inspired by protests in other Arab countries, there have been Shi'ite marches in the past few days in the east of Saudi Arabia as well as Facebook calls for two more protests this month, the first on Friday.
Qatar's index made its biggest advance in 15 months, ending at a one-week high.
"I believe there is some semi-government intervention," said Samer al-Jaouni, general manager of Middle East Financial Brokerage Co in Dubai.
"It could be funds related to government or something else. The selling pressure from foreigners has also stopped. Investors are trying to separate political issues and focus on fundamentals."
Doha's benchmark climbed 4.3% to its highest close since Feb. 27 after its biggest daily gain since December 2009. Industries Qatar surged 6% and Barwa Real Estate added 4.2%.
Stocks in the United Arab Emirates advanced, tracking Saudi gains, with Dubai's index rising 2.7%. Emaar Properties climbed 4.9%, courier firm Aramex surged 7.5% and builder Arabtec added 5.9%.
However, volumes were still low, as traders entered the market looking for short-term investments.
"The perception of geopolitical risk is low for the UAE, but the problem has been the lack of local liquidity and demand for equities," said Walid Shihabi, Shuaa Securities chief executive.
