MIDEAST STOCKS-Dubai's Arabtec jumps on rights issue talk; most mkts up

By Nadia Saleem

DUBAI, May 8 (Reuters) - Dubai builder Arabtec .ARTC.DU jumped to a two-month high on Wednesday on market talk the firm's planned rights issue may be priced lower than previously expected.

Shares in Arabtec surged 9.9 percent to 2.33 dirhams, their highest close since March 3.

Arabtec, part-owned by Abu Dhabi state fund Aabar Investments, previously stated that by June-end it would raise 2.4 billion dirhams ($650 million) through a rights issue at 1.50 dirhams per share.

Traders said there is speculation that the rights issue price might be lowered, making existing shares more valuable.

"If this is true, it looks interesting and more attractive to investors," said Musa Haddad, head of investment advisory services at National Bank of Abu Dhabi.

Arabtec declined to comment on the stock's move or the rights issue when contacted by Reuters on Wednesday.

Dubai's benchmark .DFMGI climbed 0.6 percent, extending 2013 gains to 33.3 percent.

Abu Dhabi's measure .ADI advanced 0.1 percent, up for a fifth straight session, while Qatar's index .QSI rose by the same margin to hit a 13-month high.

"We are positive on the regional markets - if there is no unexpected negative impact from the global economy, we see fundamentals getting stronger," said a Dubai-based fund manager.

In Saudi Arabia, the bourse .TASI rose for a first session in four. It added 0.3 percent to extend year-to-date gains to 6 percent, lagging most Gulf markets.

Petrochemical .TPISI and banking .TBFSI sectors made marginal gains with the respective benchmarks and up 0.5 and 0.3 percent.

"We're not seeing local incentives - a lot of companies are at fair value and there is uncertainty in big sectors, petrochemicals and banks," said Abdullah Alawi, assistant general manager and head of research at Aljazira Capital.

"The market will be range-bound unless we hear of new local catalysts."

Elsewhere, Kuwait's benchmark .KWSE slipped 0.6 percent, easing from Tuesday's 42-month high.

Traders said news of Kuwait's state chemicals company paying $2.2 billion in damages to Dow Chemical Co DOW.N hurt market sentiment. ID:nL6N0DO492

Egypt's measure .EGX30 rose 0.6 percent to an eight-week high of 5,404 points.

"The EGX30 witnessed a significant breakout after breaking its 5,300 minor resistance," said Pharos Research in a research note. "We believe that the probability that the index reaches the 5,900 resistance area is high."

Thinly-traded Aluminium Bahrain ALBH.BH jumped 7 percent after posting a first-quarter net profit that nearly doubled compared to the year-earlier period. ID:nL6N0DP09R

WEDNESDAY'S HIGHLIGHTS

DUBAI

* The index .DFMGI gained 0.6 percent to 2,163 points.

ABU DHABI

* The index .ADI climbed 0.1 percent to 3,344 points.

EGYPT

* The index .EGX30 rose 0.6 percent to 5,404 points.

SAUDI ARABIA

* The index .TASI advanced 0.3 percent to 7,206 points.

QATAR

* The benchmark .QSI gained 0.1 percent to 8,858 points.

OMAN