MIDEAST STOCKS-Major Gulf stocks gain in early trade as oil prices rise | Nasdaq

MIDEAST STOCKS-Major Gulf stocks gain in early trade as oil prices rise | Nasdaq

Major Gulf markets gained early on Thursday as oil prices rose, with most set to end their first week of the year with gains amid positive sentiment over the Gulf detente.

Oil prices rose almost 1% on Thursday after a fall in U.S. stockpiles added further support following the unilateral decision by Saudi Arabia, the world's biggest exporter, to cut output over the next two months.

Saudi Arabia and its Arab allies agreed on Tuesday to restore ties with Qatar to end a boycott imposed in mid-2017.

Qatar's index .QSI was up 0.2% in early trading. Qatar Gas Transport QGTS.QA rose as much as 1.5%.

The sharia-compliant Islamic lender Masraf Al Rayan MARK.QA, which will discuss a merger with Al Khaliji Bank KCBK.QA later in the day, rose 0.8%.

QNB Financial Services Research, part of Qatar's biggest bank Qatar National Bank, said in a note that Qatari companies including banks are forecast to get a boost from a deal to end a more than three-year row between Doha and some Gulf states.

Dubai's index .DFMGI rose 0.3%, with Dubai Investments DINV.DU and Dubai Financial Market DFM.DU adding 1.9% and 3.6%, respectively.

The Emirate of Dubai on Wednesday unveiled its fifth stimulus package, worth 315 million dirhams ($86 million), to counter the economic impact of the COVID-19 pandemic.

The Abu Dhabi index .ADI rose 0.5%, as First Abu Dhabi Bank FAB.AD rose 1.2% and telecoms major Etisalat ETISALAT.AD edged up 0.2%.

Markets in Qatar, Dubai and Abu Dhabi looked set to log weekly gains on Thursday.

Saudi Arabia's benchmark index .TASI eked out 0.1%. The world's fourth-largest chemical company Saudi Basic Industries 2010.SE advanced 1%, while Samba Financial Group 1090.SE added 0.7%.

Saudi Arabia's index, the best performer in 2020 across the Middle East, was down just 0.2% for the week.