* Saudi petchems outperform but rise is broad-based
* Construction firm Khodari soars in heavy trade
* Dearer oil could speed payment of state's bills
* Qatar index rises above 200-day average
* UAE, Egypt closed for public holiday
By Andrew Torchia
DUBAI, Dec 11 Stock markets in Saudi Arabia and
Qatar posted broad-based gains on Sunday after OPEC and non-OPEC
oil producers a day earlier reached their first deal since 2001
to curtail oil output jointly in a drive to prop up prices.
It is not clear whether oil prices can rise much further in
response to the deal, and many fund managers think Saudi
petrochemical shares are to a large extent now fairly valued
after their rebound in the past six weeks.
Nevertheless, the oil producers' deal supported fresh buying
of stocks and the main Saudi index added 1.1 percent to
7,198 points, its highest close this year, in heavy trade.
The Saudi petrochemical index surged 2.4 percent as
higher oil prices could boost profit margins. Saudi
International Petrochemical Co (Sipchem)
gained 4.0 percent after saying an affiliate had signed a
contract with South Korea's eTEC E&C for work
costing 542.6 million riyals ($144.6 million) to raise the
efficiency of operations at its methanol plant in Jubail.
Construction firm Khodari jumped by its 10 percent
daily limit in very heavy trade to 12.95 riyals, nearing major
technical resistance on its May peak of 13.10 riyals.
The stock has been buoyed in recent days by signs that the
government is making long-delayed payments on its debts to the
construction sector, which could help Khodari directly and also
indirectly by improving liquidity in the economy and helping
some stalled projects go ahead. Higher oil prices may make it
easier for the government to find money for those payments.
Some insurance sector stocks favoured by local retail
speculators also surged, with Wafa Insurance up 6.4
In Qatar, the index added 1.3 percent at 10,188
points, climbing above technical resistance on the 200-day
average for the first time since early November, although
trading volume was modest.
Mesaieed Petrochemical gained 3.7 percent and oil
drilling rig provider Gulf International Services
surged 2.5 percent, while Qatar Commercial Bank jumped
Bourses in the United Arab Emirates, Bahrain and Egypt were
shut to mark the birthday of Prophet Mohammed.
* The index rose 1.1 percent to 7,198 points.
* The index added 1.3 percent to 10,188 points.
* The index rose 0.4 percent to 5,612 points.
* The index gained 0.5 percent to 5,696 points.
(Editing by Dale Hudson)