Saudi Arabia's Tadawul All-Share Index (TASI) rose 0.28 percent to 6,362.42 - a four-week high as investors looked to the country's upbeat economy, with extra state spending announced last week well received by investors. The measure is down 3.9 percent this year.
"We've made a V-shaped recovery from the market meltdown, but people have yet to price in increased petrochemicals prices," said the Riyadh-based trader, says the trader.
Banks and petrochemicals are the two main sectors on Saudi's bourse, with the latter's prices closely tied to oil.
The sector activity for the day was all positive except 3 losing sectors. The gaining sector ranged from 0.08 percent by the Real Estate Development sector to 1.54 percent by the Retail sector. On the other hand the losing sectors were the Agriculture & Food Industries sector, the Multi-Investment sector and the Hotel & Tourism sector with 0.10 percent, 0.15 percent and 0.99 percent. The overall market breadth for the day was positive with 62 advancers against 60 decliners giving it an AD ratio of 1.03, the Financial Transaction House (FTH) - licensed by the Capital Market Authority - said in its daily market report.
The liquidity for the day reached SR3.23 billion.
Dubai hit a month-high, but is in the red for 2011. The measure gained 0.6 percent to 1,529 points on Wednesday. The Abu Dhabi index slipped 0.04 percent to 2,629 points.
"It's very positive for UAE markets that they haven't reacted to Egypt," Reuters quoted Mohammed Yasin, CAPM Investment chief investment officer, as saying.
Dubai's index was among the hardest hit as unrest in North Africa sparked protests in Arab neighbors Oman and Bahrain.
"That wasn't justified, so there's more room for UAE markets to rise - expectations are for companies to have a better year in 2011," said Yasin.
Kuwait's index slipped 0.6 percent to be within 160 points of March 7's six-year low. The index closed at 6,295 points.
"Kuwait will remain volatile - fundamentals are not there," said Badr Al-Ghanim, Global Investment House vice-president of asset management. "If you look at valuations, the market doesn't look very attractive."
Zain, which climbed 1.5 percent, is the only one of Kuwait's 20 largest stocks to rise.
"We don't expect many surprises for Q1 earnings," said Al-Ghanim. "Banks haven't done anything exceptional this year - lending growth wasn't there. We don't expect a drop in profits, but we also don't expect growth."
Qatar's benchmark fell for third day as volumes hit a four-month low, with shares in bellwether Industries Qatar suspended for a board meeting. The index fell 0.5 percent to 8,295 points.
Foreign funds have returned to Qatar, having previously left amid regional unrest, but are now shorter-term investors, said Hani Girgis, assistant chief dealer at Dlala brokerage.
"They can exit any time, which has a negative impact on our market," he said.
The Omani index climbed 0.1 percent to 6,402 points. The Bahraini measure rose 0.6 percent to 1,419 points, Reuter said.
