Mideast Stocks: Gulf markets end mixed on Gaza ceasefire rejection; Saudi extends gains

PHOTO

Stock markets in the Gulf ended mixed on Thursday after Israel rejected ceasefire offer from Hamas, with the Saudi index rising for a sixth consecutive session on upbeat earnings. Israeli Prime Minister Benjamin Netanyahu on Wednesday rejected Hamas' latest offer for a ceasefire and return of hostages held in the Gaza Strip, but U.S. Secretary of State Antony Blinken said there was still room for negotiation toward an agreement.

Diplomatic efforts continue, with a Hamas delegation arriving in Cairo on Thursday for ceasefire talks with mediators Egypt and Qatar. Jordan's King Abdullah, meanwhile, will meet U.S. President Joe Biden to lobby for an end to the war.

Saudi Arabia's benchmark index gained 0.3%, with Al Rajhi Bank rising 1.8%, while Saudi Awwal Bank advanced more than 3% after reporting a ahrp rise in annual net profit. Among other gainers, Savola Group jumped more than 6%, a day after announcing plans to distribute its entire 34.52% stake in regional dairy firm Almarai to its eligible shareholders. The deal will be preceded by a 6 billion riyal ($1.60 billion) rights issue that will help strengthen the company's position, including paying off debt and enabling distribution of shares of Almarai, the biggest dairy firm in the Middle East.

Dubai's main share index eased 0.1%, hit by a 2.7% fall in toll operator Salik Co, while Dubai Electricity and Water Authority retreated 1.6%. The utility firm reported a higher fourth-quarter net profit, however, saw a decrease sequentially in earnings. In Abu Dhabi, the index edged 0.1% higher.

Oil prices - a catalyst for the Gulf's financial markets - steadied at just above $79 a barrel, having risen for a third straight day on Wednesday as Israel rejected a Hamas offer for a ceasefire in Gaza. The Qatari benchmark lost 0.3%, hit by a 1.4% fall in petrochemical maker Industries Qatar.

Outside the Gulf, Egypt's blue-chip index advanced 1.8%, as most of its constituents were in positive territory including Commercial International Bank, which was up 3.7%.