MIDEAST STOCKS-Most Gulf markets gain on upbeat US-Iran talks; Egypt at record high

LUBEREF -0.27%
ALRAJHI -0.09%
SAUDI ARAMCO -0.07%

LUBEREF

2223.SA

110.90

-0.27%

ALRAJHI

1120.SA

109.20

-0.09%

SAUDI ARAMCO

2222.SA

27.52

-0.07%

By Ateeq Shariff

- Most Gulf stock markets closed higher on Sunday following a positive early turn in the talks between the United States and Iran over Tehran's nuclear programme, while Egypt's benchmark index finished at a fresh record high.

Iran's top diplomat said on Friday that the Oman-mediated talks were off to a "good start" and set to continue. Those remarks could help allay concern that a failure to reach a deal might nudge the Middle East closer to war.

Saudi Arabia's benchmark index .TASI finished 0.3% higher, led by a 0.5% rise in Al Rajhi Bank 1120.SE.

Elsewhere, Saudi Aramco Base Oil Co 2223.SE advanced 3.5%, following an increase in second-half dividend.

Milad Azar, an analyst at XTB MENA, said market sentiment was strengthened by the diplomatic meeting, which eased previous geopolitical pressures on regional indices.

"The market appears poised to continue its upward trajectory, supported by solid non-oil economic fundamentals and growth projections for the year, while investors await further fourth-quarter earnings releases from major heavyweights like Aramco," he said.

The Qatari index .QSI was up 0.5%, with petrochemical maker Industries Qatar IQCD.QA rising 1.1%.

Outside the Gulf, Egypt's blue-chip index .EGX30 rose for the fourth consecutive session to finish 0.6% higher, closing at its highest ever.

Egypt has signed a $3.5 billion agreement to allocate 410 megahertz of new spectrum to its four mobile operators, the cabinet said in a statement on Saturday, describing it as the largest spectrum deal in the country's telecommunications history.

According to Azar, the rally is underpinned by improving macroeconomic conditions, which have bolstered overall market sentiment.

Saudi Arabia

.TASI rose 0.3% to 11,217

Qatar

.QSI gained 0.5% to 11,415

Egypt

.EGX30 added 0.6% to 50,035

Bahrain

.BAX was flat at 2,060

Oman

.MSX30 advanced 2.2% to 6,565

Kuwait

.BKP added 0.7% to 9,330