JEDDAH: Gulf stocks maintained upward momentum Sunday as investors reacted to news that the Shoura Council had debated a draft mortgage law aimed at bringing private lenders into the market. Saudi Arabia's stock benchmark Tadawul All Share Index (TASI) gained 0.21 percent at 6,519.76. Regional markets also took their cue from a strong performance on Egypt's benchmark EGX30, which climbed 5.3 percent, the most since December 2009. The measure dropped to its lowest level in almost two years last week after reopening for the first time since the unrest that toppled Hosni Mubarak. Chahir Hosni, sales manager at EFG-Hermes, said: “The local markets are taking their cue from positive performances in Egypt and Saudi Arabia. “The EGX30 was up five per cent yesterday, which is much higher than anybody expected after only reopening last week. It was surprising to see some stocks were up on the Egyptian benchmark. Of course, some shares were down but that was to be expected. “The Saudi bourse was up two percent in intra-day trading yesterday and these two markets are setting the direction for other markets in the region. In the short term, we should see a slow down as the markets have been too positive.” Dubai's DFM General Index rose 0.23 percent to 1,556.31 at the 2 P.M. close, the highest level since Feb. 16. Abu Dhabi Securities Exchange rose 0.49 percent to 2,645.85. Bahrain's bourse closed up 0.33 percent and Kuwait's measure climbed 0.01 percent. However, Oman's MSM30 Index slipped 0.2 percent. The strong regional performance was also fueled by a new report that showed investors remain bullish on commodities with more than half increasing their commodity allocation over the next 12 months. – Saudi Gazette/QJM according to Barclays Capital's annual survey of institutional investors. Aref Energy Holding KSCC gained the most since March 22, advancing 1.6 percent to 124 fils. The division of Kuwaiti investment firm Aref Investment Group agreed to acquire a 51 percent stake in Dubai's Al Meshari Heavy Equipment Trading Co. for AED13 million ($3.5 million). Fawaz Abdulaziz Alhokair & Co. climbed to the highest intraday level since Feb. 19, rising 1.2 percent to 42.2 riyals. The Saudi clothing retailer signed an agreement with Burberry Group Plc to establish a Riyadh-based company to sell Burberry-brand products in Saudi Arabia. Alhokair will hold a 40 percent stake in the new company. "The positive momentum continues with the solid performance of Saudi markets," said Ahmed Talhaoui, the Abu Dhabi-based head of investment at Royal Capital. "There is also a perception that the Egyptian market will stabilize sooner than expected." Saudi Arabia's Shoura consultative council may pass a draft mortgage law next Sunday, Al Madina newspaper reported Saturday, citing council member Majdi Hariri. Egypt's Finance Minister Samir Radwan said the stock market will stabilize this week as the government makes $250 million available to buy shares, after the index dropped to the lowest level in almost two years last week following an almost two- month halt. The EGX 30 is the world's worst performing index with a 31 percent drop in 2011. Emaar climbed to AED3.19. Arabtec increased 2.5 percent to AED1.67. – Saudi Gazette with agencies In Abu Dhabi, real estate stocks led gains in the benchmark stock gauge Aldar Properties PJSC (ALDAR), the emirate's biggest developer, advanced 1.3 percent, bringing its climb in the past six trading days to 22 percent. Sorouh Real Estate Co. jumped 2.4 percent and Abu Dhabi's ADX General Index (ADSMI) rose 0.6 percent. "The potential stabilization of local equity markets, following the long-awaited opening of the Egyptian stock market, coincided with the finalization of the Dubai restructuring story," helping push up real estate stocks, Royal's Talhaoui said. Dubai World, the state-owned holding company that sought to alter the terms on about $25 billion of debt, signed a final deal with creditors last week, marking the end of a restructuring that roiled global markets in 2009.