RIYADH, Oct 24 (Reuters) - Saudi Arabia's stock market continued rallying early on Monday after last week's big international bond sale by the government boosted sentiment, but other Gulf markets were soft after some weak third-quarter earnings.

The Saudi stock index .TASI rose 0.8 percent in the first hour. It underperformed the region earlier this year as low oil prices and government austerity measures hit the economy hard, so may now have more room to snap back.

Petrochemical and industrial firm Alujain 2170.SE jumped 6.1 percent after it said it would distribute a 0.5 riyal per share dividend for 2016 - its first dividend since 1998.

Retail chain Jarir Marketing 4190.SE gained 3.5 percent after chairman Muhammad Alagil told Reuters that the retail sector's slump might be near ending: "We think the sharp decline is fundamentally over, or will be over by the end of this year."

The stock had dropped 45 percent year-to-date. Alagil said it was excessively cheap and he didn't exclude the possibility of a share buy-back, though he stressed this would depend on the board's decision. ID:nL8N1CS0IQ

Dubai's index .DFMGI edged down 0.1 percent in line with a lacklustre global market trend. Deyaar Development DEYR.DU fell 0.2 percent despite reporting a 22.5 percent jump in third-quarter profit; revenue for the period soared five times. ID:nD5N1CO02Y

Abu Dhabi .ADI also slipped 0.1 percent. Abu Dhabi Commercial Bank ADCB.AD initially dropped after reporting a 17 percent fall in third-quarter profit to 999.1 million dirhams ($272 million); three analysts polled by Reuters had on average forecast 1.10 billion dirhams. But the stock then rebounded in active trade to stand 0.2 percent higher.

In Qatar, the index .QSI dropped 0.3 percent as petrochemicals, metals and fertiliser producer Industries Qatar IQCD.QA fell 1.4 percent after posting a 28.9 percent drop in third-quarter net profit to 759.7 million riyals ($208.7 million). Analysts had forecast 996.6 million riyals. ID:nL8N1CT0KK

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