Gulf shares ride high on upbeat oil prices; FAB drags Abu Dhabi

09 Jan, 2023

Most major Gulf stock markets closed higher on Monday, as risk appetite picked up and investors hoped rising oil prices would continue pumping more dollars into the region.

Oil, which fuels the region’s growth, extended gains on Monday, rising about 3% after China’s move to reopen its borders boosted the outlook for fuel demand and overshadowed global recession concerns.

Brent crude was up $2.29, or 2.9%, at $80.86 a barrel by 1150 GMT.

Saudi, Qatar ends higher as China scraps COVID curbs

Fadi Reyad, chief market analyst at CAPEX.com MENA, said GCC stock markets were mostly seeing positive performances on back of improved sentiment as China continues its reopening.

The benchmark Qatari index jumped 1.5%, boosted by financial and petrochemical stocks, as the Gulf’s largest lender Qatar National Bank surged 2.5%, while Industries Qatar was up 1.7%.

Qatari IT services firm MEEZA, part-owned by telecom operator Ooredoo, said it is selling 50% of its share capital in a public-share sale with a planned listing on the Qatar Stock Exchange.

Saudi Arabia’s benchmark index rose 1.1%, led by a 1.3% hike in Al Rajhi Bank while oil behemoth and index heavyweight Saudi Aramco settled 0.6% up.

Among other active stocks, Zain KSA ended up 3.3%, paring gains after rising as much as 7.3% in the session after saying it sold its stake in the tower’s infrastructure to Golden Lattice Investment Company in a deal valued at 3.02 billion riyals ($803.94 million).

Dubai’s main share index edged up 0.6%, as its blue-chip developer Emaar Properties and Sharia-compliant lender Dubai Islamic Bank, were up 1.4%.

Abu Dhabi’s index, however, slipped 0.3%, extending losses to the fourth session in a row, pressured by a 3% slump in its largest lender First Abu Dhabi Bank.

FAB said on Thursday it had considered a bid for London-listed Standard Chartered, but was no longer doing so.

Outside the Gulf, Egypt’s blue-chip index was up 0.6%, with Commercial International Bank Egypt rising 2.2%.

SAUDI ARABIA rose 1.1% to 10,647

ABU DHABI fell 0.3% to 10,170

DUBAI gained 0.6% to 3,322

QATAR climbed 1.5% to 11,467

EGYPT was up 0.6% to 16,097

BAHRAIN edged up 0.1% to 1,889

OMAN hiked 0.3% 4,848

KUWAIT advanced 0.4% to 7,959

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