JEDDAH: Gulf markets saw a brief respite Tuesday from selling pressure sparked by Egypt's political turmoil but the reprieve is expected to be short-lived. Regional benchmarks have tumbled this week following unrest in the North African state. Saudi Basic Industries Corp. (SABIC) and Saudi Arabian Fertilizers Co. (SAFCO) were up 1.5 and 0.9 percent respectively as petrochemical stocks led Saudi Arabia's benchmark Tadawul All Share Index to close 0.24 percent higher at 6,373.17 points Tuesday. "Volumes are strong and show this really is a $1 billion a day market and has the depth and breadth to absorb sustained selling pressure, which is giving people confidence," said a Riyadh-based trader. "Volumes are coming in to meet the selling pressure and this is without any buying by state support funds like in Kuwait." Saudi volumes hit a eight-month high Saturday and although they subsequently declined, Monday's trade was 43 percent above the one-year daily average. Markets in the UAE rose Tuesday after being mauled in previous sessions, but traders offer little hope for a convincing rally. "Investors are still very tense in their investment decisions and affected by the developments in Egypt," said Mohammed Yasin, CAPM Investment chief investment officer. "The fact our markets rebounded less than the drops earlier in the week hints that buyers are still not fully in and are booking profits (occurs) with every market-positive movement." Dubai's index rose 0.6 percent to 1,544 points, rallying from Monday's 21-week low, but volumes slumped to an 11-day low and were barely a fifth of Sunday's total, indicating little buying interest. In Abu Dhabi, Dana Gas dropped 1.6 percent after saying it would evacuate foreign staff if the political crisis in Cairo deepened. Abu Dhabi benchmark rose 0.5 percent 2,599 points. Elsewhere, Kuwait index fell 0.8 percent to 6,805 points. Qatar index slipped 0.05 percent to 8,741 points. Oman index fell 0.4 percent to 6,809 points. Bahrain measure rose 0.7 percent to 1,459 points. Stocks around the world have recovered their poise and oil prices have eased from elevated levels Tuesday as investors monitor the protests in Egypt. The FTSE 100 index of leading British shares was up 1 percent at 5,919.95, though BP shares down 1.0 percent after its first full-year loss in almost two decades. Germany's DAX rose 1 percent to 7,148 while the CAC-40 in France was 0.9 percent higher at 4,042. The euro hit the highest level against the dollar in over two months Tuesday on expectations of eurozone rate hikes, while the greenback fell to a one-month low against the yen, dealers said. The shared eurozone unit struck $1.3775, the highest level since Nov. 22. That compared with $1.3686 in New York late on Monday.
