Gulf stocks inched higher on Wednesday, as oil prices extended gains after strong China manufacturing activity data boosted the outlook for global fuel demand.
China’s manufacturing activity expanded at the fastest pace in more than a decade in February, an official index showed, smashing expectations as production zoomed after the lifting of COVID-19 restrictions late last year.
Oil prices, a major driver for Gulf economies, rose 0.5% by 0800 GMT.
Saudi Arabia’s benchmark stock index climbed 0.7%, starting March on a strong note after a 6.6% decline last month. Financials were among the top boosts, with most banks trading in positive territory.
Al Rajhi Bank, the world’s largest Islamic bank by market value, and Riyad Bank gained 1% and 2.9%, respectively. Dubai’s benchmark stock index edged up 0.1%, lifted by real estate and industrial stocks.
Blue-chip developer Emaar Properties advanced 1.7% and tolls operator Salik added 2.3%.
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In Abu Dhabi, the benchmark stock index climbed 0.1%, led by a 0.3% gain in First Abu Dhabi Bank, the United Arab Emirates’ biggest lender, and a 0.6% lift in Alpha Dhabi Holding.
Emirates Insurance surged nearly 15% after proposing 50 fils per share in annual dividend.
Abu Dhabi Aviation jumped more than 8% after the helicopter operator said its board would discuss ADQ offer and seek shareholders’ nod for the same.
In October, Abu Dhabi sovereign wealth fund ADQ said it had made an offer to take a controlling stake in Abu Dhabi Aviation and merge it with ADQ stakes in Etihad Engineering, AMMROC and GAL to create a “globally competitive aviation business”.
The Qatari Stock index was up 0.1%, helped by industrial and energy stocks. Petrochemical maker Industries Qatar jumped 1.2%, while Qatar Gas transport Nakilat was up 1.2%.
Utility firm Qatar Electricity And Water gained almost 1% after saying it had agreed in principle with KAHRAMAA to extend an agreement for the sale and purchase of electricity from RAF B1 station until the end of 2029.