Gulf stocks rise ahead of earnings

Dubai: Omani shares posted their biggest one-day gain in two months yesterday, with most Gulf Arab bourses rising as investors bought into companies expected to post strong fourth-quarter results.

Bank stocks were among main gainers in the Oman rally, with Bank Muscat and National Bank of Oman surging 9.03 per cent and 5.48 per cent respectively.

The benchmark Muscat index rose 4.91 percent to 5,708 points.

"There may be some of the pension funds trying to build some positions. They always liquidate their positions at the end of the year, and build them at the beginning of the year," said Hassan Tawfiq, senior broker at United Securities in Muscat.

Banks, along with petrochemical firms, were also the top gainers on the Saudi index, which climbed on anticipated strong quarterly results and a rise in the oil price.

The Tadawul index closed 0.5 percent higher at 5,048 points.

"The oil price and fourth quarter results are the main drivers of the market," said Abdullah Al Aqeel, equity trader at Samba Financial Group.

But in Kuwait, the first trading day of the year saw the index decline more than two per cent on economic worries and lack of clarity on a government fund designed to help the bourse, which lost more than a third of its value in 2008.

The benchmark lost 2.21 per cent to 7,610 points.

"Until today we haven't got a clear statement on the plan of this fund ... this lack of visibility is affecting sentiment," said Rami Sidani, head of investment for MENA at Schroders.

In November, Kuwait asked its sovereign wealth fund KIA to set up a fund to shore up its ailing bourse. The fund began operations 10 days ago.

National Bank of Kuwait and Kuwait Finance House fell 8.47 per cent and 5.88 per cent respectively.

The Qatari index ended 0.72 per cent higher at 6,935 points.

UAE markets were closed following the death of the ruler of Umm Al Quwain. Trading will resume today.