Mideast Stocks: Gulf bourses rise on China demand optimism

Mideast Stocks: Gulf bourses rise on China demand optimism

Gulf stock markets ended higher on Wednesday, as solid growth in Chinese manufacturing activity revived investors' sentiment. China's manufacturing activity expanded at the fastest pace in more than a decade in February, an official index showed on Wednesday, adding to hopes that a recovery in the world's top crude importer can offset a global slowdown and increase oil demand.

The benchmark index in Saudi Arabia ended 0.9% higher, extending its rally to a second session. The index was lifted by gains in financial and health care sectors, with the world's largest Islamic bank by assets, Al Rajhi Bank, climbing 2.6% and Riyad Bank surging 5.4%. Shares of petrochemical maker Methanol Chemicals fell 1.7% after it reported a 15% decrease in full-year profit.

In Abu Dhabi, the index rose 0.1%, extending its gains to a second session. The index was helped by a 2.4% rise in Abu Dhabi Islamic Bank and a 0.6% gain in Alpha Dhabi Holding. Emirates Insurance leaped nearly 15% after proposing 50 fils per share in annual dividend. Abu Dhabi Aviation surged 11%, the highest intraday rise since Oct. 20, after the helicopter operator said its board would discuss ADQ offer and seek shareholders' nod.

In October, Abu Dhabi sovereign