Gulf rebounds; Egypt falls on political woes

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."

In Egypt, the main index fell 1.6 percent following European markets downwards as investors remained worried about political instability at home.

"European markets suffered a steep fall yesterday and so that is part of the reason why the market is following that trend today," said Hisham Metwalli, trader at Arab Finance Brokerage.

Concerns over the country's political future also drove investors away from the market. Authorities said they would reintroduce special security courts and use emergency law after an attack on the Israeli embassy over the weekend.

"Investors panic when they hear about news like using the emergency law again for example and so this is also a factor in dragging the market down," said Metwalli.

Commercial International Bank fell 2.6 percent while Citadel Capital lost 3.2 percent.