Most Middle East bourses recovered some of this week's losses on Tuesday, led by Saudi Arabia as bargain hunters picked up bluechips and oil prices steadied. Brent crude stabilised, trading at around $38 as of 1322 GMT. Saudi's index rose 1.3 percent, reversing Monday's declines that had dragged it to a three-year low. Bank Aljazira jumped 7.1 percent. The lender said on Monday it had scrapped a planned rights issue because of current market conditions. Contractor Al Khodari did likewise earlier this month, citing the same reason.
Almarai surged 6.9 percent to 85.50 riyals, rising for a second day since announcing it would pay a dividend of 1.15 riyals per share for 2015, 15 percent higher than its payout for 2014. The Gulf's largest dairy producer is interested in buying a majority stake in National Food Products Company (NFPC), an Emirati food and dairy manufacturer and distributor, sources told Reuters.
"In our view Almarai remains well-positioned, but a withdrawal of fuel and power subsidies from upcoming government budget announcement would impact its operating margins," said Mohammad Kamal, executive director at Dubai-based Arqaam Capital. Dubai's bourse rose 0.1 percent, up for a second day as property bluechips aided a slight rebound. The index is down 22.6 percent this year, the Gulf's worst performer in 2015. Damac Properties and Emaar Properties climbed 3.3 and 2.1 percent respectively as the developers attracted bargain hunters, said a trader.
The property and construction benchmark gained 1.2 percent, trimming its 2015 losses to 31.7 percent. Dubai's apartment and house sales prices on average fell 16 and 14 percent respectively in the first 11 months of 2015, industry consultants CBRE estimates said on Monday, forecasting further declines in sale prices next year. Abu Dhabi's benchmark slid 0.3 percent to 4,015 points, within 15 points of Sunday's 12-month low.
Abu Dhabi Commercial Bank (ADCB) and National Bank of Abu Dhabi (NBAD) were the main drags. The lenders - which make up roughly one fifth of the bourse's combined market capitalisation - fell 3.5 and 0.3 percent respectively. In Qatar, Doha's exchange rose 0.5 percent to 9,790 points, lifting the bourse 175 points above Sunday's two-year low. "The activity in the market is driven by market participants who are rotating out of some stocks and into others that offer relatively cheaper valuations," said a Doha-based trader.
Cairo's main index climbed 0.2 percent to 6,421 points, about 120 points above November's 2015 low. Local and Arab traders were net buyers, bourse data showed. Regional investors bought into their regular favourites Orascom Telecom and Amer Group, lifting both more than 5 percent. Leaders in Cairo have been deploying various economic tools to help soothe investor concerns over foreign currency shortages.