Dubai's Arabtec made its largest gain in three months on Wednesday after the builder postponed plans to raise capital, citing unfavourable market conditions, while Gulf bourses extended rallies. Arabtec, one of the most liquid stocks on Dubai's index, rose 7.9 percent after it delayed a $108.6 million rights issue and $150 million of convertible bonds, measures that would have been dilutive to minority shareholders.
Gulf Arab stocks have rebounded after tumbling in the wake of deadly protests in Oman and Bahrain that raised fears unrest would gain hold in the world's top oil exporting region. Qatar's index rose 2 percent, its third straight rise, to trim its 2011 losses to 5.9 percent. Industries Qatar climbed 3.1 percent and Commercial Bank of Qatar rose 3.6 percent.
Bank stocks led Kuwait's index to its biggest gain in eight months, rising for a second day since Monday's six-year low as investors shrugged off demonstrations a day earlier. "People here are very much used to protests - it's a frequent event in Kuwait and demonstrations are normally well behaved," said an analyst who spoke on condition of anonymity.
Dialogue, not protest, is the best way to bring change in Saudi Arabia, the foreign minister said. The kingdom's index rose for a fifth day, taking its gains to 14.8 percent since hitting a 22-month low on March 2. Rabigh Refining and Petrochemical Co 1.4 percent and Saudi Basic Industries Corp rose 1.3 percent.
"Petrochemicals are a value buy," said Ankit Gupta, senior research analyst at SICO. "Fundamentals are still intact and oil is reaching new highs and unless high crude prices translate into demand destruction, margins will tend to improve for regional producers."