MIDEAST STOCKS-Gulf stocks rise as sentiment improves amid easing banking fears

Most Gulf stock indexes rose in early trading on Tuesday, led by the gains in banking shares as worries of banking contagion eased and demand recovery in China improved investors’ sentiment, Reuters reported.

Oil prices – a major driver for Gulf economies – retreated on Tuesday after rallying in the previous session, with Brent crude futures LCOc1 falling 19 cents to $77.93 a barrel by 0651 GMT.

The prices are likely to draw support from indications of demand recovery as China’s crude imports are expected to rise 6.2% to 540 million tonnes in 2023, according to an annual forecast by a research unit of China National Petroleum Corp on Monday.

Saudi Arabia’s benchmark stock index .TASI added 0.6%, led by banking stocks, with Riyad Bank 1010.SE advancing 1.2% and Bank AlJazira 1020.SE gaining 0.7%.

State oil giant and index heavyweight Saudi Aramco 2222.SE was also up 0.5%.

Dubai’s main share index .DFMGI advanced 1.1%, snapping a three-day losing streak, lifted by solid gains in banking and property stocks.

Emirates NBD Bank ENBD.DU, Dubai’s largest lender, climbed 1.6%, while blue-chip developer Emaar Properties EMAR.DU was up 1.5%.

In Abu Dhabi, the benchmark index .FTFADGI edged up 0.3% after three consecutive sessions of declines, led by a 1.7% boost in UAE’s largest lender First Abu Dhabi Bank FAB.AD and a 2.5% jump in Abu Dhabi Commercial Bank ADCB.AD.

The benchmark stock index .QSI in Qatar also gained 0.8%, with all the constituent stocks trading higher, led by financial and energy shares.

Masraf Al Rayan MARK.QA, the sharia-compliant lender, added 2.1%, while Qatar Gas Transport Nakilat QGTS.QA was up 2.9%.