News

Feb 6 (Reuters) - Most stock markets in the Gulf ended lower on Tuesday amid rising tensions in the region, although the Saudi index reversed early losses to finish higher.

Israeli forces killed at least 14 Palestinians in airstrikes as they pressed their onslaught in Gaza's main southern city Khan Younis on Tuesday, while the top U.S. diplomat pursued a quest to broker a ceasefire in the four-month-old war.

The United States continued its campaign against Iran-backed Houthis in Yemen, whose attacks on shipping vessels have disrupted global oil trading routes.

Dubai's main share index .DFMGI declined 1.8%, dragged down by a 4.4% slide in Emirates Central Cooling Systems EMPOWER.DU and a 9.9% decline in Gulf Navigation Holding GNAV.DU.

The Dubai stock market recorded a stronger decline compared to other markets in the region, affected by the concerns around geopolitical tensions in particular as the market remained on an uptrend overall, said Joseph Dahrieh, Managing Principal at Tickmill.

"The market could remain exposed to the downside if tensions in the region flare up, although solid local fundamentals could help the market climb otherwise," Dahrieh added.

In Abu Dhabi, the index .FTFADGI dropped 1%, hit by a 1% fall in the country's biggest lender First Abu Dhabi Bank FAB.AD.

Saudi Arabia's benchmark index .TASI gained 0.4%, helped by a 1.8% rise in oil giant Saudi Aramco 2222.SE and a 3.4% increase in Dr Sulaiman Al Habib Medical Services Group 4013.SE.

Oil prices - a catalyst for the Gulf's financial markets - held broadly steady as investors waited to see whether a Middle East trip by top U.S. diplomat Antony Blinken will bring a halt to the Gaza war, which has raised concerns about supplies from the major producing region.

Outside the Gulf, Egypt's blue-chip index .EGX30 concluded 1.4% higher, weighed down by a 5% decline in top lender Commercial International Bank COMI.CA.

Non-oil private sector activity in Egypt shrank for a 38th month in January as inflation pressure and the conflict in Gaza continued to weigh on demand, a survey showed on Monday.

SAUDI ARABIA

ABU DHABI

.FTFADGI lost 1% to 9,332

.DFMGI down 1.8% to 4,154

.QSI was up 0.1% to 9,901

.BKP added 0.2% to 7,951

(Reporting by Ateeq Shariff in Bengaluru; Editing by Krishna Chandra Eluri)

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