Most Gulf stocks closed higher on Tuesday, extending their rebound, as markets tracked a rally in global shares and oil prices, with the Qatari index posting its biggest intraday gain in more than four years.
The MSCI All-World index was last up 0.9% on the day, buoyed by a growing belief among investors that central banks may be on the verge of shifting down a gear in their quest to fight inflation.
Crude prices, a key catalyst for the Gulf’s financial markets, rose on expectations that OPEC+ may agree to a large cut in crude output in its meeting this week, while strong demand and upcoming sanctions on Russian oil also lent some support to prices.
The Qatari index jumped 3.5%, its biggest intraday gain since August 2018. All stocks on the index gained, including Industries Qatar, which was up 3.9%.
The Qatari bourse continued to rebound following the surge in other markets in the region and elsewhere, said Daniel Takieddine, CEO MENA BDSwiss.
“However, it remains exposed to price corrections as natural gas resumes its decline.”
Gulf bourses end higher on firmer oil prices; Saudi outperforms
Saudi Arabia’s benchmark index climbed 1.1%, with Al Rajhi Bank rising 1.6%.
The kingdom’s non-oil private sector growth remained solid in September, helped by a relatively strong pickup in output and new orders, albeit at a slower pace than in August as confidence softened, a survey showed on Tuesday.
Dubai’s main share index closed 1.8% higher, with banking sectors among the biggest advancers in a broad-based rally.
Dubai Financial Market (DFM) said on Monday it planned to adopt a new methodology for its main equities indices, which will come into effect in the fourth quarter.
The Dubai bourse’s general index, Sharia index, and sector indices will be calculated by S&P Dow Jones Indices, it said in a statement.
DFM shares added 3.5%, snapping a 4-day losing streak.
In Abu Dhabi, the index gained 1.5%.
Outside the Gulf, Egypt’s blue-chip index finished 2.5% higher, as the investors moved to buy the dip.
The World Bank has agreed to provide Egypt with $400 million to develop the logistics and transportation sectors and support the shift towards lower carbon emissions, the group said in a statement on Monday.
========================================= SAUDI ARABIA rose 1.5% to 11,780 ABU DHABI up 1.5% to 9,909 DUBAI added 1.8% to 3,379 QATAR gained 3.5% to 13,033 EGYPT leapt 2.5% to 9,924 BAHRAIN was flat at 1,880 OMAN eased 0.1% to 4,582 KUWAIT added 3.2% to 8,048 =========================================
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