Mideast Stocks: Gulf markets gain on steady oil, receding bank fears

Mideast Stocks: Gulf markets gain on steady oil, receding bank fears

Gulf stock markets opened slightly up on Thursday, tracking Asian peers and oil prices higher, helped by improving investor sentiment as concerns over a recent banking sector crisis eased.

Oil prices — a key catalyst for the gulf's financial markets — was nearly steady, as a surprise drop in U.S. crude stockpiles offset a smaller-than-expected cut to Russian supplies, while investors closely watched developments on Iraqi Kurdistan oil exports.

Brent crude futures fell 5 cents, or 0.1%, to $78.23 a barrel at 0630 GMT.

Saudi Arabia's benchmark stock index rose 0.7%, with luxury real estate developer Retal Urban Development Company adding 0.7% and Al Rajhi Bank, Saudi Arabia's second-largest lender by assets, edging up 0.8%.

Al Rajhi Bank is set to raise $1 billion with five-year sustainable Islamic bonds, a document from one of the banks arranging the deal showed on Wednesday.

Al Kathiri Holding Company surged nearly 10%, after it completed 100 million riyals ($26.64 million) worth of domestic sukuk offering.

Dubai's main share index advanced 0.4%, gaining for a third consecutive session, led by real estate and utilities stocks. The blue-chip developer Emaar Properties climbed 1.4%, and Emirates Central Cooling Systems Corporation inched up 0.5%.

In Abu Dhabi, the benchmark index also added 0.4%, after closing flat on Wednesday.

First Abu Dhabi Bank, the UAE's largest lender, climbed 2.6% on Thursday, its biggest gain in more than 2 months, while medical manpower staffing firm Response Plus Holding inching up 1.4% after it announced an annual dividend of 0.07 dirham a share.

The benchmark stock index in Qatar was also up 0.4%, boosted by financials, with Sharia-compliant lender Masraf Al Rayan jumping more than 3% and chemical maker Industries Qatar rising 0.7%.