Gulf stock markets rose in early trade on Wednesday tracking oil prices, with merger and acquisition deals providing an additional boost to the markets in the United Arab Emirates and Bahrain.
Oil prices rose for a second session on Wednesday on signs of strong fuel demand in western economies, while the prospect of Iranian supplies returning faded as the U.S. secretary of state said sanctions against Tehran were unlikely to be lifted.
Saudi Arabia's benchmark index was up 0.4% as Al Rajhi Bank gained 0.4% and edible oil maker and retailer, Savola Group jumped 4.2%.
The Abu Dhabi index rose 0.5% with Abu Dhabi National Hotels Company (ADNH) jumping 14.9% and Abu Dhabi Commercial Bank (ADCB) adding 2.1%.
Abu Dhabi state-owned ADQ said on Wednesday it submitted an offer to ADNH to combine Abu Dhabi National Exhibitions Company (ADNEC) with the hotel firm.
The lender ADCB rose for a second day after it received on Tuesday, an amended offer for its stake in Alexandria Medical Services, whereby the potential buyer increased the offer price to 700 million Egyptian pounds ($44.87 million) from 650 million offered earlier.
The Dubai index gained 0.2%. Dubai Islamic Bank rose 0.8% and Damac properties advanced 1.5% after Maple Invest Offered to acquire remaining stake in the real estate developer at 1.3 dirhams per share, with intention to take it private.
The index in Bahrain was nearly 0.6%.Al Ahli United Bank increased 1.3%, while Khaleeji Commercial Bank surged 8.9% following a takeover offer from GFH Financial Group after raising stake in the lender to 69.05%.
GFH traded 0.5% higher.
Qatar's index edged up 0.1% as Industries Qatar gained 0.6% and Qatar Fuel dropped 1.5%
(Reporting by Maqsood Alam in Bengaluru; Editing by Angus MacSwan) ((Maqsood.Alam@thomsonreuters.com;))
