Gulf markets closed mainly higher on Sunday thanks to strong financials, while Egypt's blue-chip index rose sharply, helping it catch up with gains in other emerging markets. "Egypt is finally catching up with the risk-off trade emerging markets are witnessing," said Mohammed al-Hajj, senior macro strategy analyst at EFG Hermes, noting that the index was up around 6 percent year-to-date compared with around 7 percent for other emerging markets.

"There are also local drivers for the move such as the continuation of positive macro figures and falling T-bill yields," he added. Saudi Arabia's index was up 0.9 percent lifted by strong financials as Saudi Investment Bank rose 8.7 percent and Arab Bank rose 3.2 percent. Telecom operator Zain Saudi Arabia was also up 5.0 percent.

Both United Arab Emirates markets closed on a high, with Dubai's index up 0.9 percent and Abu Dhabi's index up 1.0 percent. Dubai's top bank Emirates NBD rose 2.0 percent, and Emaar Malls rose 1.9 percent. Abu Dhabi's Union National Bank gained 6.1 percent and developer Aldar Properties was up 2.6 percent.

Qatar's index lost 0.4 percent, weighed down by the industrial sector as Industries Qatar slipped another 1.8 percent and Qatar Fuel Co fell 0.8 percent. Kuwait's market lost 1.2 percent, dragged lower by the performance of Kuwait Finance House which was down 3.2 percent. The bank recently announced a $7 million deal to acquire Ahli United Bank, which was up 0.9 percent.

"The Kuwait market was under pressure post the ... announcement for Kuwait Finance House and Ahli United Bank merger which was not very favourable for KFH," said Sanat Sachar, equity research analyst at Al Mal Capital. "This led to strong profit taking in the name which pulled the whole market down."

Copyright Reuters, 2019