Most Gulf stock markets maintained their positive momentum on Sunday, supported by good corporate news, but major petrochemical producer Industries Qatar tumbled and dragged down the Doha bourse after announcing a dividend cut.

Industries Qatar plunged its daily 10 per cent limit as Qatar's index dropped 2.4 per cent. The company said late on Thursday that its board had recommended a 2014 dividend of 7 riyals per share, down from 11 riyals paid for 2013 and below analysts' average forecast of 11.13 riyals.

Many investors treat Qatari stocks as dividend plays, and payouts offered by local companies are usually among the highest in the Gulf.

Industries Qatar's dividend was a potentially negative signal for petrochemical producers around the region; they face tougher times because of the plunge of crude oil prices, which has been dragging down petrochemical product prices and eroding the advantage which Gulf producers enjoy from cheap feedstock.

Petrochemical stocks underperformed on Sunday in Saudi Arabia, where the sector's index edged up 0.5 per cent. The overall Saudi market index rose 1.9 percent, largely on the back of banking stocks.

National Commercial Bank rose 1.9 per cent, Al Rajhi Bank added 4.1 per cent and Bank Albilad surged 4.8 per cent. Albilad's board last Thursday recommended a 0.5 riyal per share dividend for 2014, its first dividend in at least five years, along with issuing one bonus share per four shares held.

Shares in Yanbu Cement jumped 3.2 per cent after it said its fourth-quarter profit had risen 20.6 per cent, even though full-year profit declined 2.3 per cent.

UAE, OMAN

Dubai's bourse jumped 2.7 per cent in a broad rally led by property-related stocks. Major developer Emaar Properties rose 5.8 per cent and its smaller competitors Union Properties and Deyaar climbed 4.2 and 4.7 per cent respectively.

The emirate's property stocks were beaten down in the panic selling that engulfed the bourse during December as oil slid, and are attracting fresh interest as some investors realise an international city such as Dubai could actually benefit from cheaper oil if that spurs global growth. Also, having closed their books for last year, some funds may now be returning to buy blue chips such as Emaar with the new year's allocations.

Positive momentum in the sector could boost another Dubai property developer, Damac, which will list on the emirate's main bourse on Monday. Damac, currently listed only in London, last traded at 5.9 times its 2013 earnings, a big discount to Emaar and Deyaar's ratios of 20.5 and 31.8 times respectively.

Bourse operator Dubai Financial Market surged 6.7 per cent, continuing the leg up which started last week after economy minister Sultan bin Saeed Al-Mansouri said the UAE government would favour a merger of the main Abu Dhabi and Dubai bourses, although the decision was up to the exchanges themselves.

Abu Dhabi's benchmark was nearly flat, but developer Aldar Properties jumped 2.9 per cent.

Oman's index jumped 2.4 per cent and shares in Oman Cables Industry rose 4.4 per cent after it reported a 4.9 per cent increase in 2014 profit. The company earned RO17.7 million ($46 million) last year, slightly surpassing the estimates of analysts, who had on average forecast a profit of 17.0 million rials.

Kuwait's bourse added 1.1 per cent and Egypt's index weakened by 0.4 per cent as most stocks pulled back.

SUNDAY'S HIGHLIGHTS

DUBAI: The index rose 2.7 percent to 3,775 points.
ABU DHABI: The index inched up 0.03 percent to 4,480 points.
SAUDI ARABIA: The index rose 1.9 percent to 8,445 points.
QATAR: The index dropped 2.4 percent to 12,014 points.
EGYPT: The index edged down 0.4 percent to 8,910 points.
KUWAIT: The index added 1.1 percent to 6,563 points.
OMAN: The index jumped 2.4 percent to 6,403 points.
BAHRAIN: The index inched up 0.04 percent 1,426 points.  -Reuters