Qatar Exchange was in the green yesterday adding 83.89 points or 1.03 percent to 8,206.91 points from the previous closing of 8,123.02. Commercial Bank of Qatar was up 2.19 percent to QR69.90, Qatar Telecom rose 1.93 percent to QR105.50, Doha Bank gained 1.85 percent to QR55 and Islamic Insurance was up by 1.81 percent to QR61.80. The banking and financial sector index was up by 23.54 points, the consumer goods and services sector index fell by 2.01 points, the industrial sector added 21.05 points while insurance sector gained 12.62 points.

Meanwhile, UAE markets halted declines. Dubai’s index rose 0.7 percent, snapping a six-session losing streak. Emaar Properties and Union Properties each advanced 1.8 percent. Deyaar Development gained 2.4 percent. They accounted for about 40 percent of all shares traded. Abu Dhabi’s benchmark climbed 0.5 percent, up from Thursday’s two-week closing low.

“The UAE reacted well to European banks being supported, and its normal for Saudi’s performance yesterday to feed into the other markets,” said Fouad Darwish, head of brokerage at Kuwait-based Global Investment House.

Gulf markets gains are unlikely to be sustainable as investor activity dwindles. This trading slump is largely due to a usual summer lull, plus muted expectations for second-quarter earnings. “We are approaching Ramadan and we can’t hide the fact that markets are led by retailers. People will shy away from putting in new money. There is scepticism on earnings ... the impetus is just not there.”

Elsewhere, Kuwait notched its largest one-day gain since February 19. The index climbed 1.1 percent, up from Thursday’s five-month low with trading focused on small-caps. “Market volumes are still on the low side - the session was dominated by locals, trying to make a quick buck intraday,” said a Kuwait-based trader. Gulf Finance House jumped 7 percent and Investor Holding Group rallied 9.1 percent.

Shares in Saudi Arabia ended near-flat after a choppy session with investors booking profits from Saturday’s surge. The index eased 0.07 percent, recovering most of the losses from early-session. It slumped to a five-month low on Wednesday, but rose 1.9 percent on Saturday after euro zone leaders agreed on measures to cut soaring borrowing costs in Italy and Spain. Petrochemical stocks ended lower with the sector’s index down 0.7 percent.

Buying by Saudi investors may increase ahead of second-quarter earnings, despite expectations of lower year-on-year profits for the kingdom’s companies.

“There will be a decline in profitability perhaps with oil prices having dropped,” said Amer Khan, fund manager, Shuaa Asset Management. “But the average price of oil is still good for Q2,” says Khan. “I don’t think numbers will be as bad as people are expecting.”

Brent crude lost about 20 percent in the second-quarter, posting its biggest quarterly decline since the fourth quarter of 2008 due to weak demand, ample supply and economic worries. Riyad Bank bucked the trend and added 2.2 percent after saying in a bourse statement it will distribute a cash dividend of 975 million riyals ($ 260 million) for the first half of 2012. Egypt’s exchange was closed for the end of public sector fiscal year holiday.


HIGHLIGHTS

DUBAI: The index gained 0.7 percent to 1,463 points.

ABU DHABI: The measure rose 0.5 percent to 2,460 points.

QATAR: The measure surged 1 percent to 8,207 points.

KUWAIT: The index advanced 1.1 percent to 5,855 points.

OMAN: The index slipped 0.5 percent to 5,661 points.

BAHRAIN: The index declined 0.6 percent to 1,120 points.