Egypt stocks fall for 2nd day; tourism down

Most Gulf markets bounced back on Tuesday, as bargain-hunters shrugged off world stock declines, but Egypt's bourse succumbed to fragile global sentiment and political woes at home.

In Qatar, large-caps helped lift the index , recouping some of Monday's losses as local investors returned to the market, with fundamentals overriding fears of a Greek default.

"There is a lot of interest into (stock) weakness," said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.

"There has been some institutional selling but demand locally is keeping it at current levels. There's a good (economic growth) story there."

The index gained 0.5 percent, as heavyweights Qatar National Bank and Industries Qatar climbed 0.5 percent each.

Qatar's robust economy is forecast to grow 16.7 percent in 2011.

Saudi Arabia's index rose 0.5 percent, rebounding from Monday's three-week low, as steady oil prices during trading hours lent support to petrochemical stocks.

"If the situation in the euro zone calms, investors should refocus on local fundamentals," said Paul Gamble, head of research at Riyadh-based Jadwa Investment.