Saudi Arabia’s index ended almost flat ahead of a 10-day break.
Banks attracted buyers on Qatar’s bourse for a second-day on Tuesday.
Doha Bank gained 1.2 percent and Commercial Bank of Qatar rose 1.9 percent, helping lift the index 0.4 percent.
“We can look at it (Qatar) as a more resilient market as there is interest at these levels,” said a Doha-based trader who asked not to be identified due to company policy.
“Or we can look at it like a mild correction is overdue and will do so soon. I’m going to bet on the earlier notion. It has solid support at these levels.”
Abu Dhabi’s market and Oman’s index also ended slightly higher, but heavyweight Emaar Properties weighed on Dubai’s benchmark which fell 0.4 percent. Dubai Financial Market stemmed losses, gaining 0.9 percent.
In Egypt, financial stocks grabbed most of the trading volume with Pioneers Holding sliding 5.8 percent to weigh on the benchmark which slipped 0.2 percent.
“It’s a directionless market with very low trading volume and there is a sentiment of optimism coming from Libya,” says Osama Mourad, CEO of Arab Finance Brokerage.
“The global market is holding in positive territory but the situation looks very volatile and there is no strong enthusiasm,” he adds.
Activity is expected to pick up after Eid, with a possible rebound, as long as no further negative news from developed markets spooks investors.
“Our markets have lost seven to eight percent related to the AAA story (US credit rating downgrade), but here on the ground nothing changed,” said Sebastien Henin, portfolio manager at The National Investor. “After Eid, we should have a bounce back.”
World stocks have tumbled since the beginning of August on renewed concerns over global growth, and the ongoing fallout from a downgrade of the US credit rating, as well as euro zone debt fears.
“To have a sentiment in the market, you need to have people,” said Henin. “There is no sentiment due to a lack of investors. But at the same time, the situation is not as bad as it could be.”
In Oman, local pension funds helped stem a two-day decline on the Muscat bourse which rose 0.1 percent.
Bank Muscat rose 0.5 percent, Oman Telecommunications gained 0.8 percent and Renaissance Services climbed 0.7 percent, helping lift the index.
“There is strong buying from local pension funds on Bank Muscat, Omantel and Renaissance and also some from foreigners, which is a good indicator,” said Adel Nasr, United Securities brokerage manager, adding downward pressure on Oman will be strong if world stocks dip, while an upward correlation is weak.
“It’s not a time to speculate, we’re telling people to buy on fundamentals and high dividends.”
