Mideast Stocks: Most Gulf stocks up in early trade, Saudi extends gains on rising oil prices

Saudi Arabia's benchmark index was trading 0.2% higher on track to a third consecutive daily rise


Most major Gulf stock markets rose in early trade on Tuesday, with petrochemical shares aiding the Saudi index as oil extends its gains to a sixth day, while a couple of corporate announcements pushed the Abu Dhabi index higher.

Oil markets climbed for a sixth day on Tuesday, reversing earlier losses, on fears over tight supply while surging prices of liquefied natural gas (LNG) and coal also lent support. 

Brent crude futures were up 1.3% to $80.58 a barrel at 0645 GMT.

Saudi Arabia's benchmark index was trading 0.2% higher on track to a third consecutive daily rise.

Saudi Basic Industries advanced 1.3% its fertilizer unit SABIC Agri-Nutrients added 1.9%.

Saudi Industrial Investment Group (SIIG) and National Petrochemical Company (Petrochem) surged as much as 4% and 3.2%, respectively after they announced they were signing a non-binding agreement on a proposed merger. 

Petrochem shareholders would receive 1.27 shares in SIIG in exchange for each share they owned in Petrochem.

The Abu Dhabi index was up 0.1% with International Holding gaining 0.1% and Dana Gas jumping 4.5%.

International Holding said its unit Emirates Stallions Group will Develop a hospitality project worth 240 million dirhams ($65 million) in Sudan, while Dana Gas said it won an arbitration award of $607 million in a gas supply dispute with National Iranian Oil Co (NIOC). 

The Qatari index was up 0.2% supported by gains in industrial shares. Industries Qatar increased 1.4% in its sixth consecutive rise, while Mesaieed Petrochemical added 1%.

Gains were capped by losses in the financial sector with Commercial Bank declining 2%.

In Dubai, the index was flat. The blue-chip developer Emaar Properties shed 0.3%, while Dubai Islamic Bank edged up 0.2%.

($1 = 3.6728 UAE dirham)

(Reporting by Maqsood Alam in Bengaluru; Editing by Giles Elgood) ((Maqsood.Alam@thomsonreuters.com;))

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