From Ateeq Sharif

Oct 16 (Reuters) - Most Gulf stock markets closed higher on Thursday as investors turned their focus to corporate earnings reports and higher oil prices.

The Saudi index rose 0.1 percent, supported by a 0.7 percent gain in Al Rajhi Bank and a 1.3 percent increase in oil giant Aramco.

Advanced Petrochemical Company shares gained 2.7 percent on the back of third-quarter profits.

The Dubai index gave up early gains and fell 0.2 percent, hurt by a 3.2 percent drop in Dubai Electricity and Water Authority shares after the utility distributed dividends.

However, the index's decline was limited by a five percent rise in Emirates NBD shares.

Reuters reported earlier this week that the Emirati bank was in talks to acquire a stake in India's privately held RBL Bank through a preferential allocation of shares and warrants. The report added that the Reserve Bank of India, the country's banking regulator, had endorsed the acquisition offer in informal discussions.

RBL Bank said on Wednesday it would consider a proposal to raise funds during its board meeting on October 18.

George Pavel, Managing Director of Naga.com Middle East, said the next wave of corporate earnings could be crucial in determining whether the Dubai Financial Market can maintain its recent gains, given its strong fundamentals and growth prospects for this year.

The Abu Dhabi index gained 0.2 percent, with Multiply Group's shares rising 6.9 percent after the company's board of directors approved a plan to acquire TwoPointZero and Al Ghaith Holding through a share swap.

International Holding, which also owns the Multiply Group, announced plans on Wednesday to merge several of its companies into a single holding company valued at AED 120 billion ($32.67 billion).

Pavel added that continued expectations of lower oil prices reduce the likelihood of continued gains.

Oil prices, a catalyst for Gulf financial markets, stabilized as market participants prepared for the possibility that India would stop importing Russian oil, which could boost demand for supplies from other countries.

The Qatari index rose 1.5 percent, ending four sessions of losses, thanks to a 4 percent gain in Qatar Islamic Bank. The bank is scheduled to announce its third-quarter results on Wednesday.

The main indices in Kuwait, Bahrain, and Oman rose by 0.4 percent, 0.1 percent, and 0.7 percent, respectively.

Outside the Gulf region, Egypt's blue-chip index rose 0.1 percent, with shares of Eastern Company for Tobacco rising 0.9 percent.

(USD = 3.6729 AED)

(Prepared by Noha Zakaria for the Arabic edition - Edited by Mahmoud Reda Murad)