Small-caps dominated trading with Palm Hills Development rising 3.7 percent, Citadel Capital up 6.3 percent and El Saeed Contracting gaining 2.5 percent. Arab investors attracted by cheaper valuations and non-Arab foreigners have been the main buyers, against Egyptian sellers.
In Saudi Arabia, the benchmark resumed a rally, gaining 0.4 percent to its highest close since November 11. The market has gained for 13 of the last 16 sessions as bargain hunters lifted it from a 10-month low. Banks and petrochemical stocks supported gains with Bank Albilad surging 8.2 percent. Samba Financial Group gained 2 percent and Al Rajhi Bank rose 0.8 percent. The petrochemical index added 0.3 percent.
Market sentiment is buoyed by expectations the 2013 budget, to be announced before year-end, will boost government spending. Elsewhere, Qatar's bourse made its biggest one-day gain in three months on a technical breakout, while banks helped lift Oman's market to a near six-week high. Heavyweight Industries Qatar advanced 1.1 percent and Qatar Electricity and Water climbed 0.9 percent. Of the 20 stocks on the main index, 17 gained.
Doha's index rose 0.7 percent to 8,407 points, its largest daily gain since September 12 and highest finish since November 28. In Muscat, the index rises 0.4 percent to finish at 5,696 points, its highest close since November 11. In the UAE, bluechips help Dubai's index rise 0.1 percent. Emaar Properties and carrier Air Arabia added 0.5 and 1.2 percent respectively.