Most stock markets in the Gulf reversed early losses to end higher on Wednesday, helped by optimism for a potential de-escalation in geopolitical tensions.

Hamas has proposed a ceasefire plan that would quiet the guns in Gaza for four-and-a-half months, during which all hostages would go free, Israel would withdraw its troops from the Gaza Strip and an agreement would be reached on an end to the war.

Saudi Arabia’s benchmark index gained 0.8%, rising for a fifth consecutive session, led by a 2.7% rise in the country’s biggest lender Saudi National Bank and a 1% increase in Al Rajhi Bank.

However, Savola Group closed 3.9% lower, after rising as much as 5.7% in early trade.

Savola, the kingdom’s largest food products company, said on Wednesday it plans to distribute its entire 34.52% stake in Almarai, the biggest dairy firm in the Middle East, to its eligible shareholders. Almarai was down 1%.

The deal will be preceded by a 6 billion riyal ($1.60 billion) rights issue that will help strengthen the company’s position, including paying off debt and enabling distribution of shares of Almarai.

Most Gulf markets fall on geopolitical tensions; Saudi gains

Separately, Saudi Arabia’s Modern Mills for Food Products said on Wednesday it is planning an initial public offering of 30% of its shares, the second flour mills company in the kingdom to seek a listing since the government privatised the industry.

In Abu Dhabi, the index added 0.2%.

Abu Dhabi’s stock market experienced a modest recovery, influenced by positive shifts in sentiment and a potential rebound in the oil market, said Yousef Ayoub, head of sales at NCM.

“The market could stabilize to a certain extent after significant losses, if conditions in oil markets improve.”

Dubai’s main share index gained 0.2%, with Mashreqbank advancing more than 5%.

The Qatari benchmark advanced 0.9%, led by a 3.9% rise in Qatar Islamic Bank.

Outside the Gulf, Egypt’s blue-chip index leapt 2.3%, with top lender Commercial International Bank concluding 4.8% higher.

========================================= SAUDI ARABIA     was up 0.8% to 12,166 ABU DHABI        rose 0.2% to 9,355 DUBAI            added 0.2% to 4,162 QATAR            gained 0.9% to 9,990 EGYPT            up 2.3% to 27,906 BAHRAIN          finished flat at 2,063 OMAN             lost 0.3% to 4,546 KUWAIT           was up 0.1% to 7,962=========================================