OREANDA-NEWS. Banks buoyed Saudi Arabia's bourse on Monday while Egypt continued to rise after strong economic data. Most Gulf markets moved little because of uncertainty about oil prices, though Orascom Construction rose on listing in Dubai.

Saudi Arabia's main index edged up 0.5 percent to 9,623 points, confirming a clear break of technical resistance on its February peak of 9,544 points. The benchmark faces stronger resistance on its 200-day average, now at 9,663 points.

Telecommunications operator Mobily edged up just 0.5 percent to 42.70 riyals, having jumped its daily 10 percent limit in the two previous sessions after a week-long suspension triggered by its 2014 earnings revisions.

The stock, which has been rising on bets that Mobily will recover from the earnings debacle and receive some state support if necessary, closed well off its intra-day high of 46.20 riyals.

Instead, the market's main drivers on Monday were banks which analysts say will benefit from the U.S. interest rate hike expected this year. Saudi Arabian lenders have a high concentration of interest-free Islamic demand deposits, and higher rates would improve their margins.

Strong U.S. jobs data published at the end of last week led global investors to believe the U.S. Federal Reserve will raise rates as soon as in June. The riyal is pegged to the dollar and the kingdom's central bank is likely to follow the Fed.

The banking sector index rose 0.8 percent and lenders with upcoming dividend payments gained the most. Saudi British Bank jumped 2.6 percent and Samba Financial Group rose 3.1 percent. Both will pay dividends this month.

Al Jouf Agricultural Development Co and Aldrees Petroleum and Transport Services dropped 2.5 and 3.2 percent respectively as they went ex-dividend.

UAE, EGYPT

Dubai's index edged up 0.3 percent and Dubai Islamic Bank was the main support, adding 0.7 percent on the last day when its shares carried the 0.40 dirham dividend.

On NASDAQ Dubai, the main focus was the listing of Egypt's Orascom Construction, which rose from its initial public offer price of \$14.25. It closed at \$14.69 after fluctuating between \$14.40 and \$14.75; the shares will be listed in Cairo on Tuesday or Wednesday, the firm's chief executive said.

Abu Dhabi edged down 0.3 percent. Union National Bank fell 1.9 percent as its shares went ex-dividend.

Qatar's benchmark added 0.8 percent to 12,236 points, continuing its recovery from the one-month low of 12,076 points hit at the end of last week. Trading volume increased significantly.

Barwa Real Estate rose 1.0 percent after reporting a more than doubling of its fourth-quarter net profit and an improved dividend payout for the full year. Barwa's board recommended a cash dividend of 2.2 riyals per share, up from 2.0 riyals a year earlier.

Egypt's market climbed 0.8 percent to a two-week closing high of 9,714 points, still benefiting from strong quarterly gross domestic product figures announced at the end of last week.

Carpet maker Oriental Weavers was one of the main supports, surging 7.8 percent to 12.50 pounds. The stock nearly doubled in price last year and surged further in January after the price of oil plunged, which is expected to translate into cheaper raw materials.

The shares then sank as much as 26 percent when oil stabilised and investors booked profits, causing the price to fall below targets set by most brokers. Analysts surveyed by Reuters on average value the stock at 14.70 pounds.

Property developer SODIC jumped 3.8 percent, extending gains since it announced a swing to quarterly profit last week. Commenting on those results, NBK Capital has reiterated a "buy" recommendation for the stock with a potential upside estimate of 29 percent.

"The company is guiding for around 4 billion pounds in new sales - a 33 percent increase - for 2015, which we view positively," NBK Capital said in a note on Monday.

"We believe that the current upbeat sentiment in the Egyptian real estate market should sustain over the coming years, which, coupled with SODIC's strengthened balance sheet and its established track record, should help the company achieve its sales targets."