By Andrew Torchia

DUBAI, July 24 (Reuters) - Banks pushed Qatar's stock market higher on Monday while Saudi Arabia's market edged down as telecommunications firm Mobily plunged in the wake of a bigger-than-expected quarterly loss.

The Qatari index .QSI added 0.8 percent to 9,579 points, outperforming the rest of the region and closing at its highest level since June 5, when a diplomatic crisis with neighbouring Arab states erupted. It is now just 3.5 percent from its pre-crisis level, after dropping more than 10 percent at one stage.

Corporate earnings and macroeconomic data have shown the economy is suffering only minor damage from sanctions imposed by the other Arab states, and a Reuters poll of economists last week found them predicting Qatar will remain one of the Gulf's fastest-growing economies.

Doha Bank DOBK.QA surged 2.3 percent, Islamic bank Masraf Al Rayan MARK.QA rose 1.0 percent and Qatar International Islamic Bank QIIB.QA gained 0.5 percent after reporting a modest year-on-year rise in first-half net profit.

Islamic insurer AlKhaleej Group KINS.QA surged 2.8 percent in unusually heavy trade. Exchange data showed non-Arab foreign investors remained net buyers of Qatari stocks on Monday as Gulf investors continued to cut their Qatar holdings.

Saudi Arabia's index .TASI , on the other hand, edged down 0.2 percent with National Commercial Bank 1180.SE , the kingdom's largest lender, tumbling 1.2 percent after reporting a 0.9 percent fall in second-quarter net profit to 2.42 billion riyals ($645.3 million) thanks to lower operating income; SICO Bahrain had forecast 2.63 billion riyals.

Etihad Etisalat (Mobily) 7020.SE plunged 7.2 percent to 18.74 riyals after posting a quarterly net loss of 189.7 million riyals. Analysts had on average forecast a loss of 166 million riyals.

"We remain neutral on Mobily with a price target of 22.8 riyals. Weak sales, increasing competition and ongoing losses remain the key concerns. Mobily's ability to control its declining sales will be the key catalyst going forward," NCB Capital said in a report.

Banque Saudi Fransi 1050.SE gained 3.3 percent after reporting a 4.1 percent decline in quarterly net profit.

Retailer United Electronics 4003.SE jumped 5.0 percent; it will pay a first-half dividend of 0.75 riyal per share on Aug. 20, with the stock going ex-dividend on Aug. 5.

Dubai's index .DFMGI edged up 0.1 percent as Amlak Finance AMLK.DU , which had surged in the past two days after a partnership deal with property developer DAMAC DAMAC.DU , pulled back 1.7 percent. The most heavily traded stock, builder Drake & Scull DSI.DU , added 2.0 percent.

Egypt's index .EGX3 edged up 0.3 percent but Ezz Steel ESRS.CA sank 1.6 percent, falling for a fourth straight day after it reported worse-than-expected quarterly earnings last week.



HIGHLIGHTS



SAUDI ARABIA



* The index .TASI fell 0.2 percent to 7,253 points.



DUBAI



* The index .DFMGI edged up 0.1 percent to 3,599 points.



ABU DHABI



* The index .ADI crept up 0.1 percent to 4,540 points.



QATAR



* The index .QSI rose 0.8 percent to 9,579 points.



EGYPT



* The index .EGX30 advanced 0.3 percent to 13,753 points.



KUWAIT



* The index .KWSE gained 0.3 percent to 6,822 points.

BAHRAIN



* The index .BAX rose 0.3 percent to 1,327 points.



OMAN



* The index .MSI edged down 0.1 percent to 4,995 points.

(Reporting by Andrew Torchia; Editing by Mark Heinrich) ((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))