DUBAI: Most Gulf markets edged higher in cautious trade as investors waited for the results of a European Central Bank (ECB) policy meeting later in the day.
Dubai’s index gained 0.4 percent, trading within a tight range and up 0.5 percent for the week.
Abu Dhabi’s benchmark rose 0.3 percent, extending its year-to-date gains to 6.7 percent.
UAE’s real estate-related stocks were up. Dubai bellwether Emaar Properties rose 1.2 percent, Deyaar Development climbed 0.6 percent and Abu Dhabi-listed Sorouh Real Estate added 3.7 percent.
“There are some institutions buying (in the UAE) — a technical point was triggered on Sorouh and retail investors participated in the buying action,” said Nabil Al-Rantisi, managing director of MENA Corp.
“We are getting closer to third-quarter results, so we might see some movement in the market if traders believe results will be good.”
This could snap markets out of a prolonged lull, but in the meantime investors will continue to take their cues from world stocks amid a lack of local catalysts.
World shares earlier edged up on expectations the ECB will unveil new tactics to ease the high borrowing costs facing the region’s highly indebted nations.
Yet global markets could sell off if the ECB fails to deliver on policy action, although the effect on Gulf bourses is likely to be less pronounced.
“Our markets are very dry. The sell-off (on world markets) needs to be huge for us to get affected,” said Al-Rantisi.
Investors are also waiting for Friday’s US payrolls data, which should provide clues on whether Federal Reserve will announce further monetary easing in its Sept. 12-13 meeting.
In Qatar, the measure closed 0.2 percent higher, but it is one of the worst performing Gulf markets in 2012 with year-to-date declines at 3.6 percent.
Gainers outnumbered losers 10 to six. Commercial Bank of Qatar rose 2.4 percent, Qatar Navigation added 2.2 percent and heavyweight Industries Qatar climbed 0.1 percent.
In Kuwait, the measure ended little changed. The top court will announce on Sept. 25 whether the country’s electoral boundaries are constitutional, a ruling that could spark protests in the increasingly politically divided oil producer.
The government has asked the court to rule on a 2006 law that divides Kuwait into five constituencies, a move some opposition figures say is a bid to abolish current boundaries and gerrymander victory in elections expected this year or next.
Kuwait’s benchmark has rallied since slumping to an eight-year low on Aug. 12, with traders blaming the market’s broader malaise on a worsening political and economic environment.
Elsewhere, Oman’s measure finished 0.5 percent higher, up for a fifth day.
