Most stock markets in the Gulf ended higher yesterdat, with the Dubai bourse outperforming the region.
The gains came despite Iran saying yesterday that no talks with the US were under way and that no meetings were planned.
Dubai’s main share index advanced 1.4 per cent, its biggest single-day gain since June 18, with top lender Emirates NBD jumping 3.3pc and sharia-compliant lender Dubai Islamic Bank finishing 2.9pc higher.
In Abu Dhabi, the index added 0.3pc, led by a 9.2pc surge in Alpha Dhabi Holding following a steep rise in first-half profit.
Gulf equities are gaining support from resilient bank earnings, strong non-oil growth, healthy oil prices, and hopes of easier US monetary policy.
A lasting uptrend will depend on continued foreign inflows, solid earnings, stronger volumes and geopolitical stability, Gule said, otherwise the rally may prove short-lived.
Saudi Arabia’s benchmark index rebounded from early losses to close 1.1pc higher, led by a 2pc gain in oil major Saudi Aramco. Jabal Omar Development surged 8.5pc after reporting strong second-quarter earnings a day earlier.
Two Saudi oil tankers transited the Bab El Mandeb Strait from the Red Sea over the weekend, while traffic through the Strait of Hormuz slowed amid reports of vessel attacks, shipping data showed yesterday.
The Qatari index closed 0.8pc higher, with the Gulf’s biggest lender Qatar National Bank gaining 1.5pc.
Outside the Gulf, Egypt’s blue-chip index fell 0.4pc.
Separately, an earthquake measuring 5.6 in magnitude struck 38 km north of the Egyptian city of Suez just after 3.00am (0000 GMT), Egypt’s National Research Institute of Astronomy and Geophysics said.
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