MIDEAST STOCKS-Major Gulf markets rise as investors weigh Iran-Qatar talks

By Md Manzer Hussain

BENGALURU, Nov 2 (Reuters) - Major Gulf stock markets gained on Monday as investors assessed talks between Iranian and Qatari officials aimed at securing an agreement to end the US-Israeli conflict with Iran.

The talks come amid concerns that the conflict could escalate after the November 3 US midterm elections.

President Donald Trump has said the United States would not launch fresh attacks on Iran before the vote and that discussions with Tehran had been productive, although he has not ruled out further military action afterwards.

Meanwhile, Chinese Foreign Minister Wang Yi said on Monday that all parties involved in the Middle East conflict should pursue political solutions rather than resort to force again, during a meeting with an Iranian national security official in Beijing.

Saudi Arabia's benchmark index .TASI rose 0.5%, led by materials, real estate and industrial stocks. Saudi Basic Industries Corp gained 2.3%, while Saudi National Bank 1180.SE, the kingdom's largest lender by assets, advanced 1.2%.

However, Gulf Insurance Group 8250.SE fell 8.4% after reporting a 44% drop in quarterly net profit. Leejam Sports 1830.SE slid 6.1% after the sports and fitness club operator posted an 11.1% decline in third-quarter net profit.

Qatar's benchmark index .QSI added 0.2%, with most constituents ending higher. Industrial conglomerate Industries Qatar IQCD.QA rose 2.9%, while Qatar Gas Transport QGTS.QA gained 4.6%.

Abu Dhabi's benchmark .FTFADGI advanced 0.3%, with most sectors in positive territory. Abu Dhabi Islamic Bank ADIB.AD rose 1.1%.

The four listed units of Abu Dhabi National Oil Co also gained. ADNOC Drilling ADNOCDRILL.AD rose 1.7%, ADNOC Distribution ADNOCDIST.AD added 0.8%, while ADNOC Gas ADNOCGAS.AD and ADNOC Logistics ADNOCLS.AD each gained 0.3%.

Separately, ADNOC and artificial intelligence firm G42 signed an agreement on Monday with OpenAI to deploy advanced AI capabilities across the state energy company's operations.

Dubai's benchmark index .DFMGI rose 0.6%, with nearly all sectors trading higher. Emirates NBD ENBD.DU , Dubai's largest lender, advanced 2.4%, while blue-chip developer Emaar Properties EMAR.DU gained 1.1%.

"Looking ahead, sentiment is likely to remain sensitive to any concrete developments in US-Iran talks or shifts in post-midterm risk perceptions," said George Pavel, general manager at Naga.com Middle East.

"A lack of outcomes may cause markets to continue trading cautiously, with local fundamentals underpinning the markets," he added.

Outside the Gulf, Egypt's blue-chip index .EGX30 fell 0.7%, with nearly all shares declining. Eastern Company EAST.CA slipped 5.8%, while Fawry for Banking Technology FWRY.CA dropped 3.4%.