MIDEAST STOCKS-Aramex lifts Dubai; most Mideast mkts rise

DUBAI, Sept 2 (Reuters) - Dubai's index .DFMGI and Qatar's benchmark .QSI were the region's best performers on Thursday as improving global sentiment filtered into activity in Gulf bourses.

Dubai-listed logistics and courier services provider Aramex ARMX.DU ended nearly 3 percent higher as investors saw it as a good defensive buying option in current market volatility.

"Aramex is one of the most defensive names, and good in a volatile market," says Marwan Shurrab, vice-president and chief trader at Gulfmena Alternative Investments.

"Plus, it has a strong balance sheet and positive management view of expansion and cash flow. Third quarter results are expected to be better than the second quarter."

Heavyweight Emaar Properties EMAR.DU ended 1.2 percent higher, also boosting the index which rose 0.8 percent.

Some banks in the United Arab Emirates attracted buying interest after rating hikes by Goldman Sachs earlier on Thursday and an optimistic outlook report from Standard and Poor's on Wednesday.

Goldman Sachs raised its ratings on Abu Dhabi Commercial Bank ADCB.AD and Dubai Islamic Bank DISB.DU, saying UAE banks are adequately capitalised to generate sufficient operating income to absorb elevated loan losses.[ID:nSGE68113H]

It added Abu Dhabi Commercial to pan-Europe buy and removed Dubai Islamic Bank from the pan-Europe sell list. ADCB rose 1.2 percent and Dubai Islamic climbed 1.6 percent.

Banks across the region gained after a report by ratings agency Standard and Poor's pointed to a positive outlook for Gulf banks. [ID:nLDE68011R]

In Qatar, Islamic lender Masraf al Rayan MARK.QA rose 2.8 percent and Doha Bank DOBK.QA ended 2.3 percent higher, lifting the benchmark, while Oman's largest lender Bank Muscat BMAO.OM climbed 0.2 percent.

Most regional bourses were also buoyed by optimism in global markets on Thursday after world stocks hit a two-week high and oil prices rose as optimism from strong manufacturing data extended into a second day ahead of a euro zone interest rate decision and key U.S. jobs data.[MKTS/GLOB]

In Egypt, textile firms also boosted the index .EGX30, led by Arab Cotton Ginning (ACGC.CA) on expectations the firm will pay a big dividend in the coming weeks.

"We are hearing rumours there is going to be a huge dividend payout soon," said Hashem Ghoneim from Pyramids Capital.

"Since it is up today it pulled the whole sector with it."

As the holy month of Ramadan comes to a end, traders in the Gulf say the focus after the Eid holiday will shift to third quarter earnings.

"At the moment, liquidity is a problem across the region. After Eid, we only have fifteen days before the end of Q3. Maybe we'll see more activity after Eid over the outlook for Q3," said Adel Nasr at United Securities in Muscat.

THURSDAY'S HIGHLIGHTS

QATAR

* The benchmark .QSI rose 0.8 percent to 7,306 points.

DUBAI

* The index .DFMGI climbed 0.8 percent to 1,498 points.

EGYPT

* The measure .EGX30 rose 0.5 percent to 6,526 points.

ABU DHABI

* The index .ADI edged 0.1 percent higher to 2,495 points.

KUWAIT

* The benchmark .KWSE climbed 0.4 percent to 6,703 points.

OMAN

* The index .MSI ended flat at 6,260 points.

BAHRAIN

* The measure .BAX fell 0.2 percent to 1,420 points.

(Editing by Jason Benham)