Jan 31 (Reuters) - Major stock markets in the Gulf edged higher in early trade on Wednesday, on course to claw back some of its losses from the previous session, although the Saudi index bucked the trend to trade lower.
Saudi Arabia's benchmark index dropped 0.4%, hit by a 2.6% fall in the country's biggest lender Saudi National Bank and a 1.5% decline in Al Rajhi Bank. The index had fallen more than 2% on Tuesday.
The International Monetary Fund lowered its 2024 forecast for economic growth in Saudi Arabia to 2.7% on Tuesday, projecting a slower recovery amid lower oil production, but said non-oil growth this year was expected to remain "robust".
Saudi Arabia's government on Tuesday ordered state oil company Aramco to halt its oil expansion plan and to target a maximum sustained production capacity of 12 million barrels per day (bpd), 1 million bpd below a target announced in 2020.
Shares of Aramco were down 0.2%.
Oil prices - a catalyst for the Gulf's financial markets - fell as lacklustre economic activity in China, the world's biggest crude importer, weighed on sentiment, but prices were set for their first monthly gain since September as broadening Middle East conflicts raised supply concerns.
Dubai's main share index added 0.2%, helped by a 1.1% rise in blue-chip developer Emaar Properties, while Tecom Group advanced 2.2% following a sharp rise in annual profit.
In Abu Dhabi, the index added 0.1%.
The Qatari benchmark gained 0.5%, with Qatar Islamic Bank rising 1.1%.
On Tuesday, Hamas said it had received and was studying a new proposal for a ceasefire and release of hostages in Gaza, presented by mediators after talks with Israel, in what appeared to be the most serious peace initiative for months.
Reporting by Ateeq Shariff in Bengaluru; Editing by Janane Venkatraman
Source: Reuters