DUBAI: Most stock markets in the Gulf ended higher on Wednesday, while the Saudi index snapped three sessions of gains.
Crude prices, a key catalyst for the Gulf’s financial markets, were steady as investors waited for the outcome of an OPEC+ meeting and official U.S. data on crude and product inventories to gauge supplies.
Dubai’s main share index edged 0.1% higher, helped by a 0.4% rise in lender Dubai Islamic Bank.
The sharia-compliant lender said on Tuesday it joined Etisalat Digital’s blockchain platform “UAE Trade Connect”.
The Government of Dubai’s Department of Finance will consider reducing government fees on commercial activities following the introduction of a federal corporate tax on business profits.
The United Arab Emirates’ Finance Ministry announced its plan to introduce a federal corporate tax on business profits on Monday for the first time starting from June 1, 2023, although it kept the rate low, at 9%, to remain attractive to businesses.
In Abu Dhabi, the index added 0.2%, with telecoms giant Etisalat closing 0.2% higher.
The Qatari benchmark gained 0.3%, led by a 1.2% rise in Islamic lender Masraf Al Rayan, while United Development jumped 4.2% ahead of its earnings announcement.
Bourses in the Gulf markets were mostly up, thanks to strong oil prices and positive economic fundamentals in the region, said Wael Makarem, senior market strategist at Exness.
Saudi Arabia’s benchmark index dropped 0.8%, dragged down by a 25.8% plunge in Saudi Investment Bank as the lender traded ex-dividend.
Among other losers, Saudi National Bank lost 2.7%, despite reporting a higher annual profit.
The Saudi market saw some price corrections after a sharp upside rally as investors moved to secure their gains, said Makarem.
Outside the Gulf, Egypt’s blue-chip index gained 0.8%, with Fawry for Banking Technology and Electronic Payment advancing 5.7% higher.
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