Increased liquidity in the banking sector and tightening debt spread is something that could revise investor’s sentiments in the fragile economic environment. UAE’s moribund stakes may pick up in the coming days as told by executive of Dubai's Daman Investments.

Strong position of petrochemicals and banks share pushed Saudi shares after week long holidays on accounts of the Islamic Eid Al Fitr, according to Bloomberg data.

Saudi Basic Industries Corp. (SABIC), the world’s biggest petrochemicals maker, and National Industrialization Co. (NIC), known as Tasnee, revived investor confidence making the economy bouncing back to the highest rates since April.

Banque Saudi Fransi (BSFR), the Kingdom’s fourth-largest publicly traded lender by assets registered 4 per cent increase in its shares on the bourses.

Global uncertainties, international equity weakness and week global economic outlook plunged most of the Gulf stock markets on Sunday. Investors have adopted cautious approach and most of them are preferring investment in gold given to metal's safe investment status.

Saudi companies reported mixed response from the investors with shares of many companies either marginally declined or increased during the recent trading. The market is apparently under pressure due to uncertainties prevailing in the global economies especially in the United States and the European countries.

Gulf based food companies saw significant decline in shares yesterday as stocks declined 0.45 per cent in Abu Dhabi’s food and farming companies. The decline is reported despite assurance by analysts regarding Emirates resilience to the financial crisis. Food and farming sector is the only segment where stocks declined amid uncertain signals from US and European markets.

Saudi Arabia’s market saw ups and downs with stocks of majority of companies getting mixed response from the investors amid uncertainties prevailing in the market due to numerous reasons. The Tadawul All Share Index rose 0.3 per cent.

Abdullah A.M. Al-Khodari Sons Co, leading contractor of Saudi Arabia, saw 4.3 per cent decline in shares. The firm announced to pay a dividend of 1 riyal a share to the stockholders for the first half of the year.

Abu Dhabi Commercial Bank is all set to divest its 24.9 per cent stakes in the Malaysia-based RHB Capital according to a MoU signed on 17 June, 2011. The stake sale will significantly boost capital of the bank and it is expected to receive about AED 7.0 billion ($1.9 billion) in cash from this sale.