Saudi, Qatar stocks rebound

DUBAI, Mar 06 (Reuters): Gulf stock markets were mixed on Tuesday as some markets such as Saudi and Qatar took heart from a rise in global stocks and oil prices, while Abu Dhabi's stock market dropped 2 per cent as First Abu Dhabi Bank went ex-dividend.

Qatar stock market rose 0.7 per cent after slumping to its lowest level in more than two months on Monday when two big Qatari companies went ex-dividend.

Saudi stocks jumped 0.6 per cent, buoyed by telecom and financial stocks. Saudi Arabia Mining Co rose 1.81 per cent after sharply falling this week as the majority owner of the world's largest fully integrated aluminum facility was weighed down by news about planned rise in US tariffs.

"Global markets have improved and the Saudi market is already balanced, so people are optimistic and the bet is still on leading stocks and banks," said Mazen Al Sudairi, head of research at Rajhi Capital.

US stocks rose after four days of decline and Asian shares also regained ground on Tuesday after US President Donald Trump faced growing pressure from political allies to pull back from proposed steel and aluminium tariffs.

Crude prices held firm, underpinned by robust demand forecasts and prospects for informal contacts sought by OPEC with US shale oil producers at a key industry meeting in Houston this week.

In Abu Dhabi, the index was weighed down by financials as First Abu Dhabi Bank dropped 7.3 per cent as the stock went ex-dividend.