Gulf stocks rise as oil prices climb and hopes grow for a US-Iran deal
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BENGALURU, May 21 (Reuters) - Gulf stock markets rebounded on Thursday as investor sentiment was boosted by expectations of an imminent U.S.-Iran deal to end the Middle East conflict and by rising oil prices.
Oil prices rose 2 percent after Reuters reported that Iran's Supreme Leader Ayatollah Mojtaba Khamenei had issued instructions not to send weapons-grade enriched uranium abroad.
Pakistan intensified its diplomatic efforts on Thursday to accelerate peace talks between the United States and Iran, as Tehran said it was reviewing Washington's latest response. US President Donald Trump suggested he might wait a few days for "the right answers" from Tehran, but also indicated a willingness to resume attacks.
Dubai's index rose 0.6 percent, recovering from the previous session's losses, with gains across all sectors. Emaar Properties shares climbed 1.1 percent, while Air Arabia, the low-cost carrier, gained 2.4 percent.
The Dubai Media Office said on Thursday that Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Deputy Prime Minister, approved an additional 1.5 billion dirhams in economic facilities in the emirate, bringing the total value of facilities provided within two months to 2.5 billion dirhams.
The Abu Dhabi index rose 0.4 percent, led by gains in the utilities and technology sectors. Abu Dhabi Islamic Bank shares climbed 1.2 percent, while ADNOC Logistics & Services and ADNOC Gas shares rose 1.1 percent and 0.6 percent, respectively.
The CEO of Abu Dhabi National Oil Company (ADNOC) said the company remains committed to its five-year capital investment program of AED 551 billion ($150 billion) aimed at improving its operations, driving growth and enhancing its contribution to meeting global energy demand.
The Qatari index rose 0.6 percent, with shares of Qatar Investment Holding jumping 2.3 percent after a report that it had hired Rothschild & Co. to handle a potential initial public offering of its healthcare unit. Shares of Industries Qatar, a subsidiary of Qatar Energy, climbed 0.8 percent, and Mesaieed Petrochemical Holding gained 1.8 percent.
Qatar Energy said on Wednesday it had acquired stakes in three offshore exploration blocks in Uruguay from a Shell subsidiary, marking its first foray into the South American country's energy sector.
The Saudi index rose 0.4 percent, with shares of National Commercial Bank climbing 2.2 percent. Shares of Kingdom Holding jumped 8.3 percent, their biggest daily gain in over a year, after the company announced that the Four Seasons Resort and Residences Red Sea on Shura Island had begun welcoming guests.
The Omani index ended a nine-session losing streak, surging 5.4 percent as all listed stocks rose. Shares of OQ Exploration and Production climbed 6.8 percent, while Bank Nizwa shares jumped 9.4 percent.
George Pavel, general manager of Naga.com in the Middle East, said, "Despite the recent declines, the market remains in a strong upward trend and can continue to attract investors looking to buy stocks when they are low in a robust economy."
Bahrain's main index closed 0.2 percent higher. Kuwait's main index gained 0.6 percent.
Outside the Gulf region, the Egyptian stock market index rose 0.3 percent, supported by an 8.3 percent increase in Orascom Development shares and a 1.5 percent rise in Fawry for Banking Technology and Electronic Payments shares.
