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, Reuters said.
"This is the right move, rather than pushing it through when risk appetite is low, especially among foreign investors," said Jad Abbas, EFG-Hermes real estate analyst.
Abbas said Arabtec would likely revisit capital raising.
"It all depends on political risk in the region," he added. "If things go wrong elsewhere, there could be more delays but as a plan I think Arabtec still wants to raise capital."
The Dubai index climbed 2.2 percent to 1,443 points. The Abu Dhabi index rose 1.3 percent to 2,606 points.
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.
"Volatility may continue in the short-term, but long-term investors, such as the pension funds and endowments funds are likely to capitalize on these declines by increasing their exposure to the region," Reuters quoted Shakeel Sarwar, head of asset management at Securities & Investment Co. (SICO) in Bahrain as saying.
Qatar's index rose 2 percent to 8,172 points, its third straight rise, to trim its 2011 losses to 5.9 percent.
"Qatar is one of the lowest risk Gulf countries and international investors probably have a similar view - local and foreign investors are buying Qatar stocks again," said Robert Pramberger from Doha-based The First Investor.
Industries Qatar climbed 3.1 percent and Commercial Bank of Qatar rose 3.6 percent.
"Things might remain wobbly for a quarter, but then hopefully we will return to high growth because Qatar valuations are cheap and dividends and GDP look good, so there's a reason to buy at current levels," added Pramberger.
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, Reuters said.
"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.
"The market is having more of a technical rebound, with investors targeting stocks that have been sold off despite little change in their fundamental outlook - it's the same story on other Gulf markets."
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.
The Tadawul All-Share Index (TASI) edged higher by 0.57 percent to close at 6,108.67 points. The sector activity for the day was all positive except two losing sectors. The gaining sector ranged from 0.02 percent by the Industrial Investment sector to 1.69 percent by the Media and Publishing sector. On the other hand the losing sectors for the day were the Energy & Utilities sector and the retail sector with 0.25 percent and 0.30 percent. The overall market breadth for the day was positive with 75 advancers against 51 decliners giving it an AD ratio of 1.47, the Financial Transaction House - licensed by the Capital Market Authority - said in its daily market commentary.
The stock market for the day reached SR4.84 billion.
"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."
The Omani index climbed 0.2 percent to 6,304 points. The Kuwaiti benchmark rose 1.3 percent to 6,219 points. The Bahraini index climbed 1.2 percent to 1,409 points.
