DUBAI: 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%.