Saudi Arabia's stock market rose in early trade on Tuesday tracking oil prices higher, while the Qatari index was on course to extend losses for a second session.
Crude prices, a key catalyst for the Gulf's financial markets, rose as the U.S. dollar eased against major peers but gains were limited by worries of slowing global fuel demand growth amid bearish economic data from key oil importing economies such as China. Saudi Arabia's benchmark index (.TASI) added 0.1%, helped by a 1.4% rise in Retal Urban Development Co (4322.SE) and a 3% leap in Saudi Telecom Company (STC) (7010.SE).
STC said on Monday the kingdom's sovereign wealth fund had made a non-binding offer to buy 51% of its towers business, valuing the latter at almost $6 billion.
STC said the offer was in line with its growth strategy to "expand by retaining stakes in value-added strategic assets across its subsidiaries, as well as benefiting from the return on these assets" that will allow it to invest further and maximise shareholder returns. Elsewhere, shares of Saudi Tadawul Group Holding (1111.SE) were up 1.1%, a day after the country's Public Investment Fund announced the establishment of the Regional Voluntary Carbon Market Company with Tadawul.
The Qatari index (.QSI) dropped 1%, as most of the stocks on the index were in negative territory including Qatar Aluminium Manufacturing Co (QAMC.QA), which retreated 3.3%.
In Abu Dhabi, the index (.FTFADGI) added 0.1%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) gaining 0.1%. Dubai's main share index (.DFMGI) dropped 0.5%, hit by a 2% fall in sharia-compliant lender Dubai Islamic Bank (DISB.DU) despite reporting a rise in quarterly net profit.
