Stocks news Mideast - Markets buoyant as risk appetite rises Thursday, 02 February 2012 08:56

Gulf markets are expected to remain upbeat on Thursday, with gains in global stocks spurring investors to commit new cash to regional shares.

Saudi Arabia's bourse hit an eight-month high on Wednesday and as the largest in the Gulf the kingdom's bourse often dictates sentiment on its neighbouring exchanges.

The Dubai and Abu Dhabi bourses slumped to multi-year lows on Jan. 16, but have since risen 11.7 and 7.5 percent, with trading volumes also up after reaching seven-year lows in 2011.

"Markets are looking good - there's liquidity coming in, mainly driven by dividend expectations," says Musa Haddad, head of MENA equity desk at National Bank of Abu Dhabi.

"There's a reason for investors to start buying again with stocks at very cheap levels, but we're not out of the woods yet."

Dubai Islamic Bank posted a 25 percent rise in annual profit and has proposed a 15 percent cash dividend, while rival lender Mashreq Bank's fourth-quarter profit plunged 59 percent as interest and fee income fell.

Asian shares, the euro and crude oil are up as encouraging manufacturing data soothed fears about the global economic fallout from the euro zone debt crisis, with a drop in European government debt yields also supporting sentiment. (Reuters)