Mideast Stocks: Saudi index gains on rising oil prices; Qatar flat

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Saudi Arabia's stock market ended higher on Thursday, posting its biggest weekly gain since July helped by rising oil prices, although Qatari shares bucked the trend to close lower.

Crude prices, a key catalyst for the Gulf's financial markets, rose by more than $1 in response to tighter supplies and on news that China is considering a cut in the duration of quarantine for inbound visitors.

China, the world's largest crude importer, has stuck to strict COVID-19 curbs this year, which weighed heavily on business and economic activity, lowering demand for fuel.

Saudi Arabia's benchmark index advanced 1.4%, buoyed by a 2.3% rise in Al Rajhi Bank and a 4.6% jump in Riyad Bank.

The Saudi stock market resumed its rebound, finding support in stronger oil prices, said Farah Mourad, Senior Market Analyst of XTB MENA.

"However, the market could see some price corrections if crude prices start declining again."

The Saudi index posted its biggest weekly gain of 4.7% since July. Among other gainers, Saudi Aramco was up 0.8%, following a Bloomberg News report that the oil giant was pushing ahead with plans for an initial public offering of its energy-trading business by the end of this year or in early 2023.

No final decisions have been made and the IPO could be delayed or cancelled if market conditions worsen, the report added. In Abu Dhabi, the index rose 0.6%, with telecoms firm e&, former known as Emirates Telecommunications, leaping 3%. Dubai's main share index added 0.3%, helped by a 1.2% gain in Emirates NBD Bank and an 5.4% leap in Deyaar Development.

Deyaar reported a surge in its third-quarter profit while revenues rose 72% on the back of a revival in the emirate's real estate sector.

The Qatari index traded flat.

Outside the Gulf, Egypt's blue-chip index climbed 1.2%, with Fawry for Banking Technology and Electronic Payment gaining 5.6%.