Saudi Arabia's stock market outperformed Gulf peers on Thursday, extending rebound for a second session, but posted a monthly loss following a recent slide.
On Monday, the Saudi bourse hit its lowest in over 9 months, as fears grew that central banks racing to raise interest rates to tame inflation will drag the global economy into recession.
Saudi Arabia's benchmark index (<.TASI>) finished 2.1% higher, buoyed by a 2.7% rise in oil giant Saudi Aramco (<2222.SE>) and a 1.8% increase in Al Rajhi Bank (<1120.SE>).
But the rise could be temporary if oil prices record more losses, according to Daniel Takieddine, CEO MENA BDSwiss.
Crude prices firmed, erasing earlier losses, on indications that OPEC+ might cut output, though a stronger dollar and weak economic outlook kept a lid on gains.
However, the index registered a monthly loss of over 7%, its biggest monthly drop since June.
In Abu Dhabi, the index (<.FTFADGI>) added 0.4%, supported by 1.8% increase in the United Arab Emirates' biggest lender First Abu Dhabi Bank
The Qatari index (<.QSI>) closed 1.2%, with Qatar National Bank (<QNBK.QA>), the Gulf's biggest lender, jumping 1.2%.
The Qatari stock market continued to rebound with natural gas prices stabilizing to a certain extent, said Takieddine.
