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Gulf bourses are mixed as China’s pessimism offsets higher oil prices

A trader leaves the Bahrain Stock Exchange after Joe Biden won the U.S. presidency in Manama, Bahrain on November 8, 2020. REUTERS/Hamad i Mohammed/File Photo acquires license rights

Nov 12 (Reuters) – Gulf stock markets posted a mixed performance on Sunday as higher oil prices were offset by concerns about weakening demand from China, the world’s biggest crude importer.

Oil prices – a key driver of Gulf financial markets – rose about 2% on Friday as Iraq expressed support for OPEC+ oil cuts ahead of a group meeting on November 26. Brent futures settled at $81.43 a barrel.

The Qatari index (.QSI) broke a three-day losing streak with a gain of 0.3% on Sunday. Masraf Al Rayan (MARK.QA) and Qatar Fuel (QFLS.QA) each rose 1.4%.

Saudi Arabia’s benchmark index (.TASI) extended losses for a fourth straight session, falling 0.1%, with Fawaz Abdulaziz Alhokair Co (4240.SE) falling 9.9%, its biggest decline in recent memory than 13 months.

The retailer reported a net loss of 202.9 million riyals ($54.1 million) in the third quarter, compared to a net profit of 21.1 million riyals a year earlier.

Saudi Telecom (7010.SE) fell 1.3% and Maharah for Human Resources (1831.SE) fell 8.6%.

Data from China on Thursday showed policymakers are struggling to control disinflation, raising doubts about the chances of a broad-based economic recovery in the world’s biggest commodity consumer.

Outside the Gulf, Egypt’s blue-chip index (.EGX30) fell 1.7%, with Commercial International Bank (COMI.CA) down 2.5% and Misr Fertilizer (MFPC.CA) down 4.6%.

However, Credit Agricole Egypt (CIEB.CA) rose 3.7% as the lender reported a 121% rise in consolidated net profit in the third quarter.

($1 = 3.7508 riyals)

Reporting by Md Manzer Hussain; Edited by Kirsten Donovan

Our standards: The Thomson Reuters Trust Principles.

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