MIDEAST STOCKS-EFG-Hermes boosts Egypt; NBK lifts Kuwait

DUBAI Aug 17 (Reuters) - Egypt's EFG-Hermes (HRHO.CA) rose on Tuesday after the lender said it would to buy a majority stake in privately-owned Lebanese rival, Credit Libanais, helping the Cairo index end a four-session losing streak.

EFG added 2 percent as Egypt's benchmark climbed 1.5 percent. Other Middle East indexes moved less than 1 percent in lacklustre trade.

National Bank of Kuwait (NBKK.KW) surged 4.8 percent as investors bought shares to participate in the lender's 10 percent capital increase. NBK ended at 1.32 dinars, its highest finish since Nov. 30, 2008.

"NBK's results were positive and so investors could be buying the stock to participate in the rights issue," said Naser al-Nafisi, general manager for Al Joman Center for Economic Consultancy in Kuwait.

The rights issue, which was approved in March, will raise $113 million and is priced at 0.5 dinar, a significant discount on Tuesday's closing price, although this is likely to fall after dilution. [ID:nLDE6260J1]

In July, NBK reported a 10 percent rise in second-quarter profits. [ID:nLDE66C16R]

Dubai's Emaar Properties EMAR.DU and Emirates NBD ENBD.DU rose 1.9 and 2.1 percent respectively.

"Dubai is looking stable, but I wouldn't call it great and it should continue to move sideways," said Vyas Jayabhanu, head of investments, Al Dhafra Financial Broker.

"Earnings were lukewarm, with some coming below expectations and others about average. There is no catalyst for investors to start picking up shares aggressively."

Dubai's index .DFMGI climbed 0.9 percent in its largest advance for two weeks, but this rise is unlikely to herald a shift from its sideways trading range.

"Markets should be flat to lower on nearly non-existent volumes," said a Dubai trader who asked not to be identified.

"What's happening is not a result of only Ramadan and summer holidays, it's more than that and is going to run until the end of year," the trader added, referring primarily to UAE bourses.

Qatar's .QSI benchmark climbed 0.3 percent as 2.2 million shares were traded, barely a third of a 12-month daily average.

Industries Qatar rose 0.5 percent and Qatar Islamic Bank QISB.QA added 0.7 percent. Gainers topped losers 12 to two.

"Investors are building positions, particularly in banks, which is a good indicator for positive investor appetite," said Samer al-Jaouni, General Manager of Middle East Financial Brokerage Co.

Bank Muscat BMAO.OM rose 0.5 percent to a two-month high, helping Oman's index .MSI end a four-session losing run.

"It's a problem of liquidity in the market - the investor base is very small, although some volumes are coming into Bank Muscat, Jazeera Steel AJTM.OM and Voltamp Energy VOES.OM," said Joice Mathew, United Securities head of research.

"People are hoping for a breakout in the market, but without increased volumes this wouldn't be sustained."

Voltamp and Jazeera Steel climbed 2.2 percent and 0.3 percent respectively.

TUESDAY'S HIGHLIGHTS

EGYPT

* The index .EGX30 climbed 1.5 percent to 6,376 points.

KUWAIT

* The measure .KWSE rose 0.1 percent to 6,655 points.

DUBAI

* The benchmark .DFMGI rose 0.9 percent to 1,487 points.

SAUDI ARABIA

* The index .TASI edged up 0.06 percent to 6,162 points.

QATAR

* The benchmark .QSI rose 0.3 percent to 7,063 points.

ABU DHABI

* The index .ADI edged up 0.03 percent to 2,495 points.

OMAN

* The index .MSI rose 0.02 percent to 6,277 points.

BAHRAIN

* The index .BAX climbed 0.4 percent to 1,416 points. (Additional reporting by Tom Pfeiffer in Cairo; editing by Firouz Sedarat)