Most Gulf bourses advance as Saudi defence pact countries push for peace

Most Gulf bourses ended higher on Tuesday as diplomatic efforts to de-escalate the Middle East conflict gathered pace, a day after Saudi, Turkish and Pakistani officials held talks in Tehran.

It was the first high-level contact between Iran and the three allies, who signed a mutual defence pact in August, since the US-Israeli strikes on Iran triggered a war that spread to Saudi Arabia and Yemen.

Saudi Arabia’s benchmark index advanced 2.3%, led by a 2.8% jump in Al Rajhi Bank, while First Milling Company soared 9.9% after the flour miller reported a steep rise in quarterly profit.

Oil behemoth Saudi Aramco ended 1.7% higher.

Methanol Chemical Company finished 9.3% higher after reporting a narrower quarterly loss.

Meanwhile, OPEC+ is likely to keep its December oil output targets unchanged on Sunday, three sources familiar with the matter told Reuters, in line with expectations that no further policy adjustments will come before next year.

Regional tensions remained high. The Saudi-led coalition in Yemen said on Tuesday it had intercepted and destroyed ballistic missiles and drones launched by the Houthis at two regions of Saudi Arabia.

The Houthis later said it had attacked the Ras Tanura oil refinery, Saudi Arabia’s largest, west of the Strait of Hormuz.

Dubai’s main index leapt 2%, buoyed by a 3.4% rise in blue-chip developer Emaar Properties .

GCC stocks extended gains as geopolitical worries eased and regional diplomacy lifted sentiment. Shipping disruptions on key maritime routes remain a risk, though strong third-quarter earnings could provide further support, said Mahmoud Mashal, senior market analyst at VT Markets Dubai.

Also in Dubai, DIP Holding, owner of the Dubai Investments Park real estate business, is seeking to raise up to $543 million in an initial public offering. It would be the UAE’s first potential listing this year.

In Abu Dhabi, the index added 1.1%, with Abu Dhabi Islamic Bank increasing 5.7%. Post-trading-hours, the sharia-compliant lender reported a marginal rise in third-quarter profit.

Among other gainers, Aldar properties was up 1.6% on higher quarterly earnings.

Qatar’s index jumped 3.4%, its best session since April, with Gulf heavyweight Qatar National Bank up 3.1%. The index had hit a more than six-year low last week.

Outside the Gulf, Egypt’s blue-chip index closed 3.5% higher, as all its constituents were in positive territory.

Egypt’s parliament authorised President Abdel Fattah al-Sisi on Monday to use “all necessary measures” to help defend Saudi Arabia, raising the prospect of Cairo’s direct involvement against the Houthis.