MIDEAST STOCKS-Most Gulf bourses end higher; UAE shares extend losses

By Ateeq Shariff and Md Manzer Hussain

March 5 (Reuters) - Most Gulf stock markets ended higher on Thursday, though UAE equities fell again, extending losses from the prior session when its exchanges reopened after a two-day suspension prompted by Iran's weekend missile-and-drone barrage on the Emirates.

Following the reopening, the Dubai and Abu Dhabi exchanges temporarily set a 5% lower price limit on securities to try to reduce volatility.

Israel launched another large wave of strikes on Tehran on Thursday, targeting what it said was infrastructure belonging to the Iranian authorities, after Iranian missiles sent millions of Israelis rushing into bomb shelters.

Dubai's main share index .DFMGI closed 1.3% lower after falling as much as 4.2% earlier in the session, with top lender Emirates NBD ENBD.DU and blue-chip developer Emaar Properties EMAR.DU both losing 4.9%.

Budget airline Air Arabia AIRA.DU dropped 4.9%, but utility firm Dubai Electricity and Water Authority DEWAA.DU advanced 5.3%.

XTB MENA analyst Milad Azar said that while the market may remain sensitive to regional developments, Dubai's underlying fundamentals are strong and could support a rebound.

Abu Dhabi's index .FTFADGI retreated 2.2%, with First Abu Dhabi Bank FAB.AD falling 1.2% and Aldar Properties ALDAR.AD down 5%. Abu Dhabi Commercial Bank ADCB.AD tumbled 4.7%.

Saudi Arabia's benchmark index .TASI finished 0.8% higher, with Al Rajhi Bank 1120.SE rising 1.7%.

The Saudi index posted a weekly gain of 0.6%.

Al Moammar Information System 7200.SE surged 10% to its daily maximum limit on a deal with AI firm HUMAIN to design and build a data centre.

ACWA Power 2082.SE and Dallah Healthcare 4004.SE gained 3.5% and 6.1% respectively, following increases in full-year net profit.

The Saudi market bounce was driven by higher oil prices after the initial jolt from recent geopolitical tensions. Azar said stocks looked set to build on the recovery, supported by expectations of firmer energy prices as disruptions persist in the Strait of Hormuz, a vital energy transport route.

Oil prices surged more than 3%, extending a rally as the war raised fears of prolonged disruptions to Middle Eastern oil and gas supplies.

Shares in oil major Saudi Aramco 2222.SE, however, eased 0.7%.

The Qatari benchmark .QSI rose 1%, with Qatar National Bank QNBK.QA, the Gulf's biggest lender by assets, up 3.2%.

Gains were limited by a 2.5% fall in petrochemical maker Industries Qatar IQCD.QA and a 7% slide in Qatar Aluminum Manufacturing Co QAMC.QA.

Qatar, the Gulf's biggest liquefied natural gas producer, declared force majeure on gas exports on Wednesday, with sources saying a return to normal production may take at least a month.

Oman's .MSX30 and Kuwait's .BKP indexes both advanced 1.3%, while the Bahraini index .BAX fell 1.1%.

Outside the Gulf, Egypt's blue-chip index .EGX30 climbed 2.3%, snapping a four-day losing streak, led by a 3.7% gain in Commercial International Bank COMI.CA.

However, the Egyptian index recorded a weekly decline of 3.5%, its steepest drop since June.