Gulf Bourses Rise as Saudi Index Extends Winning Streak

The Gulf region's stock markets rose on Monday, led by Saudi Arabia's benchmark index which gained for its fifth consecutive session. The index closed at 11,174, up 0.9% from the previous day.

Despite a drop in oil prices due to weaker investor sentiment ahead of expected US sanctions on Iran, financial, utilities, and materials shares drove gains across most Gulf bourses. Saudi Basic Industries, a petrochemical maker, rose 1.6%, while Al Rajhi Bank added 1.7%. ACWA Power, which signed storage-services agreements with the Saudi Power Procurement Company, advanced 2%.

The Abu Dhabi benchmark index added 0.4% due to gains in First Abu Dhabi Bank and Alpha Dhabi Holding. Dubai's main index rose 0.2%, while Qatar's benchmark climbed 0.5%. Emaar Properties and Salik Company led the way on Dubai, with Mesaieed Petrochemical Holding and Qatar National Bank driving gains in Qatar.

Geopolitical risks remain a concern for investors, but local fundamentals are seen as strong enough to limit downside risks. A US sanctions announcement could lift sentiment, according to Daniel Takieddine of Sky Links Capital Group.