Dubai, Abu Dhabi markets go into Eid break on a high

Dubai's index gained 1.2 percent, its highest close since Aug. 4. but volumes remained low.

Retail-driven stocks were among the most active, with Emaar Properties rising 1.8 percent, Drake & Scull advancing 1.3 percent and low-cost carrier Air Arabia  adding 1.3 percent.

Meanwhile Abu Dhabi's benchmark ended on a near four-week high, closing 0.5 percent up. Dana Gas and Aldar Properties accounted for half of the total shares traded on the index, gaining 1.8 and 2.5 percent respectively.

Gulf markets are closed from Aug. 30 for Eid Al Fitr. Most bourses will resume trade on Sept. 4, with Saudi Arabia's market restarting on Sept. 3.

Gulf markets took support from global stocks, which jumped almost one percent on Monday while the dollar struggled after Federal Reserve Chairman Ben Bernanke left the door open for further action to stimulate the U.S. economy and fight unemployment. He said the central bank's policy panel would meet for two days in September instead of one to discuss additional monetary stimulus, offering some hope to investors.

"People don't want to take long positions before the Eid holiday," said Rami Sidani, Schroders Middle East head of investment. "We expect international events to continue to price performance in our markets, especially (in) places like UAE and Saudi Arabia."

Oman

Oman's Renaissance Services hit a near three week high on Monday as investors picked up the battered stock while other regional bourses edged higher in thin trade ahead of a long religious holiday, taking support from hopes there may be further measures in the United States to help the economy.

The oil services firm jumped 6.1 percent, up for a fifth consecutive session. The stock had plummeted to a 2009-low after it discovered financial fraud at unit Topaz and reported a 77-percent drop in first-half net profit. Investors believe the sell-off was overdone.

"Interest in Renaissance Services picked up with the accumulation strategy of medium-to-long term investors," said Kanaga Sundar, Gulf Baader Capital Markets head of research.

Banks also helped the index, which ended 1.1 percent higher at a four-week high. Analysts say local pension funds and foreign funds have come back strong in Oman and the bourse is expected to continue its uptrend.

Bank Muscat gained 1.3 percent and Bank Sohar climbed 2.7 percent. "We do remain positive on Omani banks with valuations remaining attractive," Sundar added.

Most Gulf bourses have recovered losses spurred by a US credit rating downgrade on Aug. 5 by Standard & Poor's, and are now back to levels prior to the ratings cut.

Qatar

Masraf Al Rayan helped lift Qatar's index which ended 0.8 percent higher, also at a near-four week high. The investment firm rose 0.4 percent, accounting for nearly half of the shares traded. Other financial stocks also rose with Commercial Bank of Qatar  gaining 1.3 percent and Qatar National Bank rising 0.8 percent.

Kuwait & Bahrain

Kuwait's index ended near-flat, edging higher for a fourth straight day.

Bahrain's bourse holiday is conditional on the first day of Eid, and will be closed for three trading days.

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