By Celine Aswad
DUBAI (Reuters) - A bounce in oil prices at the end of last week helped lift stock markets in the Gulf on Sunday, while Egypt's main index eased off a 13-month closing high as investors were cautious about a preliminary agreement with the IMF on a loan programme.
Dubai's index <.DFMGI> rebounded 1.2 percent to 3,567 points, its highest close in 16 weeks. Emaar Properties
But DAMAC Properties
Large cap banking shares helped push Qatar's index <.QSI> up 0.9 percent to 11,054 points, a fresh nine-month closing high. Commercial Bank
In Saudi Arabia, the index <.TASI> gained 0.8 percent as most petrochemical shares advanced after Brent crude futures
The positive mood spilled into other sectors, with the banking sub-index <.TBFSI> climbing 0.7 percent. Its top performer was Banque Saudi Fransi <1050.SE>, which jumped 3.4 percent.
Cairo's main index <.EGX30> retreated 0.3 percent to 8,351 points but closed 66 points above its session low. Global Telecom Holding
On Thursday, the index gained 1 percent as investors cheered a preliminary three-year, $12 billion funding deal with the International Monetary Fund. But while most analysts believe the agreement will be highly positive for Egypt, they are concerned by the impact of austerity policies that are expected to accompany it, such as subsidy cuts and the introduction of a value-added tax.
"While we expect positive reaction from the markets and the investor community as a whole, indirect social repercussions resulting from the programme's implementation, led by rising inflation, need to be factored in as well," brokerage Naeem said in a note.
Analysts at Sigmal Capital expect the central bank will raise interest rates at its meeting in September to combat a likely rise in inflation.
* The index <.TASI> added 0.8 percent to 6,374 points.
* The index <.DFMGI> gained 1.2 percent to 3,567 points.
* The index <.ADI> was flat at 4,527 points.
* The index <.EGX30> lost 0.3 percent to 8,351 points.
* The index <.QSI> gained 0.9 percent to 11,054 points.
* The index <.KWSE> edged down 0.01 percent to 5,499 points.
* The index <.MSI> edged up 0.1 percent to 5,897 points.
* The index <.BAX> added 0.4 percent to 1,156 points.
(Editing by Andrew Torchia and Susan Fenton)