Quarterly bank results helped Qatar's index rise for a third session on Thursday as most Gulf Arab exchanges tracked gains in global equities. Five of the six regional benchmarks advanced, with Oman the largest gainer with a 2 percent rise as bank stocks soared, despite earnings coming in below expectations. Saudi Arabia was closed for the weekend, while Egypt jumped 4 percent. Qatar Islamic Bank was a major driver of Doha's 1.9 percent rise after the lender's second-quarter profit rose 16 percent, according to Reuters calculations, beating forecasts. Its stock climbed 3.3 percent. “Qatar Islamic's results (were) a positive indicator for the market,” said Samer Al-Jaouni, general manager of Middle East Financial Brokerage Co. Petrochemicals producer Industries Qatar jumped 6.2 percent as oil held above $61 a barrel on Thursday after rising 3.4 percent the day before. Rising oil prices tend to boost petrochemical product prices and give Gulf manufacturers a competitive advantage over rivals from higher-tax regions. Comments by the United Arab Emirates central bank governor helped Dubai's index rise 1.5 percent, its third straight gain. Sultan Nasser Al-Suweidi was quoted as saying the bank may buy into the second tranche of Dubai's $20 billion bond program after purchasing the first part earlier this year. “There's good sentiment in Dubai after the bank governor's remarks,” said Nadim Jalad, a trader at Naeem Shares and Bonds in Dubai. “This will enable Dubai government companies to meet their obligations and pump liquidity into the market.” Emaar Properties, which plans to merge with three units of Dubai Holding, added 2.8 percent. The stock has risen 12 percent in three days, but is still down 20 percent since merger announcement on June 26. “The reason Emaar's shares fell so much is because its level of disclosure over the merger has been pathetic,” said Shakeel Sarwar, Sico investment bank head of asset management. “There are no firm details when it will be completed and minority shareholders have been taken for granted. When a company of Emaar's size acts in such a manner it will only deter institutions, both foreign and local, from investing in these markets.” Bank Muscat climbed 5.9 percent, despite second-quarter profit falling 62 percent to $31.17 million, according to Reuters calculations, which was markedly below forecasts. The lender took $104.4 million of provisions, in part against potential losses at Saudi conglomerates Saad Group and Ahmad Hamad Al-Gosaibi and Brothers Co. “Investors were expecting much worse and so it's no surprise to see Bank Muscat's shares up today,” said Sunil Dhall, an independent market analyst. “This is a relief rally and people might upgrade their expectations for the bank sector.” Kuwait's index underperformed the region, rising 0.5 percent as four of its five largest stocks declined. “Investors are wary of believing in the next rally and so the market will consolidate around current levels,” said Jassem Al-Zeraei, head of institutional sales at National Bank of Kuwait Capital. “We cannot yet say whether this is a slowdown in the downtrend with more downside next week or whether a rally might continue.” Similar caution was seen across most regional indexes, with investors booking late profits ahead of the weekend. “Gulf markets are tracking gains in global stocks and oil prices and if these fall again, our markets will follow,” said Hassan Tawfiq, a senior broker at United Securities in Muscat. “Investors are trading on day-to-day basis and will wait for more second-quarter figures to come out before deciding their strategy.” World stocks rose to two-week highs on Thursday. The Kuwait index climbed 0.5 percent to 7,580 points. In Dubai, the measure rose 1.5 percent to 1,737 points. Dubai Financial Market added 6.1 percent. The Adu Dhabi index climbed 1.1 percent to 2,677 points. Aldar Properties added 6.3 percent. The Qatar index climbed 1.9 percent to 6,385 points. The Oman index rose 2 percent to 5,537 points. In Bahrain, the measure fell 0.7 percent to 1,498 points, its fifth decline in six sessions.
