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Most stock markets in the Gulf ended higher on Monday on back of corporate earnings and rising oil prices, although the Saudi index extended losses as consolidation continued.

Prices of oil - a key catalyst for the Gulf’s financial markets - were set to post their biggest monthly gains in more than a year, on expectations that Saudi Arabia will extend voluntary output cuts into September and tighten global supply.

Dubai’s main share index gained 0.6%, led by a 2.4% rise in top lender Emirates NBD and a 1.5% increase in utility firm Dubai Electricity And Water Authority.

Most Gulf markets fall following Fed rate hike; Qatar gains

Last week, Emirates NBD posted a 78% surge in its second-quarter profit to a record 6.2 billion dirhams ($1.69 billion) on higher margins, an improved deposit and loan mix, and substantial recoveries.

In Abu Dhabi, the index was up 0.3%.

The Qatari index edged 0.1% higher, helped by a 2.3% rise in Qatar Islamic Bank, while telecoms firm Ooredoo added 0.5% after reporting a rise in first-half earnings.

Saudi Arabia’s benchmark index dropped 0.8%, extending losses for a second session after hitting a nine-month high, with Dr Sulaiman Al-Habib Medical Services dropping 1.7%.

Iran’s foreign ministry spokesperson said on Monday that a normalisation of ties between Saudi Arabia and Israel would harm regional peace and stability.

Outside the Gulf, Egypt’s blue-chip index added 0.2%, Telecom Egypt advancing 3.2%.

The Central Bank of Egypt (CBE) is forecast to leave its overnight interest rates unchanged at a policy meeting on Thursday, even after inflation hit a record high in June, a Reuters poll showed on Monday.

SAUDI ARABIA fell 0.8% to 11,692

ABU DHABI rose 0.3% to 9,787

DUBAI added 0.6% to 4,059

QATAR gained 0.1% to 10,963

EGYPT up 0.2% to 17,596

BAHRAIN increased 0.4% to 1,992

OMAN eased 0.1% to 4,776

KUWAIT lost 0.4% to 8,061

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