* Egypt stimulus 25 pct larger than previously thought
* Saudi Hollandi surges on bonus share issue
* Abu Dhabi banks play catch-up to Dubai
* Waha Capital soars on AerCap's plane leasing deal
* Oman outperforms on BP's gas investment plan
By Nadia Saleem
DUBAI, Dec 17 Egyptian shares rose on Tuesday,
lifting the main index to a 35-month high, after the finance
minister announced plans for a second economic stimulus package
worth around 30 billion Egyptian pounds ($4.4 billion).
The spending, 25 percent more than previously announced and
financed partly with aid from the Gulf, is to begin in January.
Finance minister Ahmed Galal said 20 billion pounds would be
spent on public investment, while the rest would cover a public
sector minimum wage.
Cairo's benchmark index rose 1.2 percent to 6,720
points, its highest level since January 2011, before president
Hosni Mubarak was ousted.
"The market is reacting positively to the second stimulus
plan and the confidence that they have the funds for this," said
Islam Batrawy, Cairo-based head of regional equity sales at NBK
Juhanya Food Industries jumped 5.5 percent and
Commercial International Bank gained 1.0 percent.
In Saudi Arabia, shares in Saudi Hollandi Bank
climbed 4.5 percent to their highest close since Oct. 30 after
the lender said it planned to boost its capital by 20 percent
next year through a bonus share issue.
After rising almost 10 percent in each of the past two days,
PetroRabigh showed signs of losing steam, gaining only
5.3 percent. It has been climbing since it said its parent
companies agreed to cut international marketing fees for
PetroRabigh's products by a third over a five-year period.
The overall Saudi market stayed quiet; the main index
gained just 0.3 percent to 8,412 points, a five-year
high. The market is up 23.7 percent year-to-date, heading for
its best year since 2009.
Mohammad Omran, president of Riyadh-based private firm Gulf
Centre for Financial Consultancy, said the market could target
the 8,500-point level by year-end.
"Petrochemicals, telecoms and banking will be the leading
sectors in the coming year, but growth in banks will be modest."
ABU DHABI BANKS
In Abu Dhabi, banking shares that lagged the recent leg up
by Dubai's bourse played catch-up. The Abu Dhabi index
climbed 1.3 percent to its highest level since September 2008;
Abu Dhabi Commercial Bank rose 5.6 percent.
"There are a lot of investors looking for bulk buying in the
banking sector as a whole on speculation about earnings and
dividends," said Hisham Khairy, head of trading for the
institutional desk at MENA Corp. Companies will announce annual
dividends and earnings after mid-January.
Waha Capital surged 14.9 percent to its highest
level since September 2008 after the company said it would vote
in favour of AerCap Holdings' $5.4 billion acquisition
of American International Group's aircraft leasing unit.
The company is AerCap's largest shareholder with a 26.3
percent stake, though if the deal is completed, Waha's stake
will be reduced to about 14 percent, it said.
Oman's market gained 0.5 percent, outperforming most
of the Gulf. On Monday, BP announced it would drill some
300 wells for gas under the Omani desert over the next 15 years
in a $16 billion project that may give a significant boost to
the economy, which is about $80 billion in size.
* The index rose 1.2 percent to 6,720 points.
* The index gained 0.3 percent to 8,412 points.
* The index advanced 1.3 percent to 4,104 points.
* The index climbed 0.3 percent to 3,144 points.
* The index eased 0.06 percent to 10,469 points.
* The index retreated 0.6 percent to 7,609 points.
* The index gained 0.5 percent to 6,795 points.
* The index edged up 0.07 percent to 1,207 points.
(Editing by Andrew Torchia)