Major Gulf bourses gain as banks lift Saudi index

Major stock markets in the Gulf rose in early trade on Monday, with the Saudi index bolstered by gains in its banking shares.

Saudi Arabia's benchmark index rose 0.5pc, with Al Rajhi Bank gaining 1.4pc and Riyad Bank up 2.1pc.

The kingdom's consumer price index jumped 6.1pc in July compared with a year earlier, boosted by a tripling of value-added tax, official data showed on Sunday.

The annual inflation rate in June was 0.5pc, the smallest increase since January, before the VAT increase to 15pc from 5pc came into effect on July 1.

Dubai's main share index edged up 0.2pc, supported by a 2pc rise in Emirates NBD Bank, on course for its fifth session of gains.

On Thursday, the lender said it is in preliminary discussions with Lebanon's Blom Bank over a potential acquisition of its shareholding in Blom Bank Egypt.

Arabtec Holding, by contrast, declined 4.9pc.

The United Arab Emirates' largest listed contractor swung to a loss in the first half of the year, citing tight liquidity and limited new projects, and said it was seeking an advisor for debt restructuring.

This will be the third restructuring exercise for Arabtec in the last four years. It hired AlixPartners in 2016, and Moelis & Co in 2018.

In Abu Dhabi, the index added 0.2pc. Emirates Telecommunications rose 0.3pc, while National Marine Dredging surged 14pc.

National Marine on Sunday received an offer from the shareholders of the National Petroleum Construction Company to combine the two companies.

The Qatari index gained 0.5pc, led by a 1.5pc rise in Qatar National Bank, the Gulf and Africa's largest lender.