Amman - Most Middle East stock markets rebounded on Tuesday, propelled by a US plan to rescue the Citigroup conglomerate, a 30- billion-dollar British stimulus plan and improving oil prices, financial analysts said.

Jordanian shares rose for the first time in 10 days, encouraged by the Central Bank of Jordan's decision to slash the basic interest rate by 0.5 percentage points.

The all-share price index of the Amman Stock Exchange (ASE) gained 1.42 per cent, led by blue chips - notably the Arab Potash Co., the Jordan Phosphates Mines Co. and the Jordan Petroleum Refinery.

Egypt's CASE 30 index, which measures the performance of the market's 30 most active stocks, gained 4.9 per cent as an optimistic mood prompted a surge of buying by foreign investors.

The United Arab Emirates stock exchange in Dubai led gainers in the oil-rich Gulf region, with the bourse's all-share price index rising more than 2 per cent.

Kuwait's benchmark closed 0.46 per cent higher on Tuesday, despite a political crisis between the government and the parliament over a visit to Kuwait by a Shiite Iranian cleric, who some parliamentarians claimed had insulted Sunni Muslims.

However, the Saudi stock exchange, the Arab world's largest bourse, closed lower, with the Tadawul All Share Index (TASI) losing 0.86 per cent after rising 6.21 per cent on Monday. (dpa)