Dubai: The Saudi index rose, extending gains for a third day, led by Saudi Basic Industries helped by a recovery in crude oil. Other indices in the region fell.

The Tadawul All Share Index in Saudi ended 0.68 per cent higher at 8.801.68, after hitting a high of 8,802.92. The index has gained more than 6 per cent so far in the year.

Saudi Basic Industries, the world’s biggest petrochemical producer and the stock with the second-highest weighting on the main gauge, jumped 2.03 per cent to be at 90.99 riyals.

“This was a reaction to the movement in oil prices. We have reached a point in crude oil, where the negative of supply demand dynamics have been priced in,” said Saleem Khokhar, head of equities at National Bank of Abu Dhabi asset management group.

Brent crude traded near $70 a barrel, erasing earlier gains as traders evaluated the impact of OPEC’s decision to maintain output at last week’s meeting.

“There is a realisation that it would take a protracted period of lower oil prices to significantly impact the underlying economic dynamics of the region. That’s why we have seen markets stabilising a little bit,” said Khokhar.

Saudi Arabia, OPEC’s biggest oil exporter and the largest Arab economy, has spending plans valued at more than $500 billion. It needs prices to average $99.2 a barrel this year to balance its budget, according to Deutsche Bank AG. The six-nation Gulf Cooperation Council, which includes Saudi Arabia and the United Arab Emirates, is home to about a third of the world’s proven oil reserves.

The desert kingdom is opening one of the most restricted major stock exchanges as a means to diversify the economy from oil and create new jobs. It plans to grant foreigners, who are barred from directly buying and selling domestic assets, access to the $522 billion market next year.

Stability in UAE markets:

“On Thursday, Dubai markets are expected to stabilise a little bit after having dropped on the back of oil price post the Opec decision,” said Khokhar.

On Monday, the Dubai Financial Market General Index ended 2.23 per cent lower at 4,186.11. The Abu Dhabi Securities Market General Index ended 0.19 per cent lower at 4,666.01.

“We expect a higher opening on Thursday as oil markets have stabilised. It will be a quiet session with low liquidity due holidays,” said Sebastien Henin, head of asset management, The National Investors.

Markets were off on Tuesday and Wednesday to National Day celebrations.

Other indices in Gulf region ended lower. The Qatar Exchange Index ended 1.13 per cent lower at 12,612.33. The Kuwait Stock Exchange Index ended 0.12 per cent lower, while Muscatel’s MSM 30 ended 0.15 per cent lower.