Mideast Stocks: Gulf Shares Up As Israel-Iran Ceasefire Holds, Dubai Hits 17-Year High

Stock markets in the Gulf closed higher on Thursday amid steady oil prices as a ceasefire between Israel and Iran appeared to be holding for a second day. Markets have been soothed by the ceasefire after 12 days of strikes on each other's territory.

U.S. President Donald Trump said on Wednesday he would likely seek a commitment from Iran to end its nuclear ambitions at talks next week.

Dubai's benchmark stock index extended its rally to a fifth straight session, rising 1.3% to 5,684, its highest level in 17 years. Dubai Islamic Bank climbed 4.9% and tolls operator Salik advanced 2.2%.

The Abu Dhabi benchmark index rose 0.8%, aided by a 7.6% surge in RAK Properties and a 4.3% gain for Abu Dhabi Islamic Bank. Fitch Ratings affirmed the UAE's rating at "AA-" with a stable outlook on Tuesday, while S&P Global assigned the same rating last week.

Saudi Arabia's benchmark stock index extended its gains to a fourth straight session, rising 0.9%, with most sectors in the green. 

Al Rajhi Bank, the world's largest Islamic lender, gained 0.9% and oil major Saudi Aramco added 0.7%. Elsewhere, Saudi Arabia's trade surplus fell sharply in April, even as non-oil exports surged and imports rose, according to new government data issued Wednesday.

Oil prices, a catalyst for the Gulf's financial markets, rose 0.4% as a larger-than-expected draw in U.S. crude stocks signalled firm demand. Brent was trading at $67.98 a barrel by 1230 GMT.

 The Qatari benchmark index was up for a consecutive fifth day, rising 0.4% with almost all its constituents posting gains. AlRayan Bank advanced 1.4% and Industries Qatar added 0.5%.

Qatar Investment Authority and Canadian asset manager Fiera Capital have launched a $200 million fund to boost foreign and local investment into the Gulf state's stock market, QIA said on Wednesday.

"Markets are benefiting from favorable market sentiment following the easing of geopolitical risks", said Joseph Dahrieh, managing principal at Tickmill. "This has led to increased demand for stocks in the region and a greater focus on market fundamentals".

SAUDI ARABIA up 0.9% to 11,068

KUWAIT Closed

QATAR gains 0.4% to 10,685

EGYPT Closed

BAHRAIN Closed

OMAN down 0.2% to 4,507

ABU DHABI rose 0.8% to 9,886

DUBAI advanced 1.3% to 5,684