Qatar index rebounds sharply, major Gulf markets firm

Qatar's stock market rebounded on Tuesday, erasing a sharp fall suffered on the previous day, while other major Gulf bourses were firm on the back of strong oil prices after Brent crude rose above $70 a barrel for the first time since December 2014. The Qatari index had tumbled 2.5 percent on Monday because of heavy selling in the final half-hour, ending a seven-day rising streak. Sentiment was hit after the United Arab Emirates said Qatari fighter jets twice intercepted Emirati civilian aircraft during routine flights to Bahrain, which Qatar denied.
Jitters over the incident subsided on Tuesday, however, and the index surged 2.6 percent to close marginally above its finish last Thursday. Trading volume was moderate. The index has been in a strong uptrend for the last several weeks as investors chase annual dividends and after data showed damage to the Qatari economy from a boycott imposed by other Arab states was less severe than feared.
Islamic bank Masraf Al Rayan, due to report annual earnings after the close, jumped 5.3 percent on Tuesday and shipper Gulf Navigation surged 6.2 percent. Saudi Arabia's index rose 0.7 percent as petrochemical producer Saudi Kayan gained 3.4 percent in unusually heavy trade.
Media company Saudi Resources and Marketing jumped in early trade but closed 1.1 percent lower in its heaviest volume since September, erasing part of a 10 percent leap on Monday. The stock has been the focus of trade by speculators who think the company could benefit from changes to the corporate landscape due to the country's crackdown on corruption. Dubai's index edged down in early trade but closed 0.9 percent higher on the back of a 1.5 percent rise by blue chip Emaar Properties.
Emirates NBD, Dubai's biggest bank, rose 1.8 percent after reporting a 17.2 percent year-on-year rise in fourth-quarter net profit, in line with analysts' forecasts. In Oman, Al Izz Islamic Bank jumped 6 percent after saying its net loss for last year narrowed while net operating income gained 38 percent. Galfar Engineering added 2.8 percent after saying its annual net loss narrowed 45 percent.
But Gulf International Chemicals tumbled 5.3 percent after saying annual net profit roughly halved, as revenues fell.