Most Gulf stock markets closed higher on Tuesday as a surge in oil prices and hopes of a solid economic recovery in China boosted investor sentiment.
Crude oil prices – a key catalyst for Gulf financial markets – rose 1.4% on Tuesday, with Brent crude up $1.19 to $83.64 by 1300 GMT. Expectations of a recovery in demand from the world’s largest oil importer China supported gains as economists polled by Reuters expected factory activity to pick up in February.
The benchmark index in Saudi Arabia rose 1.1%, driven by gains in almost all sectors. Petrochemicals maker Sahara International Petrochemical rose 4.3% after reporting an increase in full-year profit. However, the index ended the month down nearly 6.6%, erasing some of January’s gains.
In Abu Dhabi, the index rose 0.1% for a monthly gain of 0.3%. The index was boosted by a 1.3% gain in real estate developer Aldar Properties and a 2.4% gain in Abu Dhabi Islamic Bank. Al Yah Satellite Communications rose 3.1% after its board proposed a final dividend of 8.06 fils per share, bringing the total dividend for fiscal 2022 to 16.12 fils per share.
The Dubai benchmark index ended 0.6% higher, posting a monthly gain of 4.1% after ending the previous month in the red. The index was supported by gains across almost every sector, with blue-chip developer Emaar Properties up 2.6% and Emirates Central Cooling Systems up 2.6%.
The Qatar index rose 0.3%, helped by gains in the financials and industrials sectors. The Gulf’s largest lender, Qatar National Bank, rose 1.9%, and index-heavy Islamic banks Qatar Islamic Bank and Qatar International Islamic Bank gained 0.8% and 1.7%, respectively. On a monthly basis, however, the index was down 3.3%.
Outside the Gulf, Egypt’s blue chip index slipped 0.6%, extending losses into a second session. The index was dragged down by losses in the financials and materials sectors. Commercial International Bank and Misr Fertilizer fell 2.4% and 6.2%, respectively. However, the index is on course for a 3% gain this month, the fifth consecutive positive month.
- SAUDI ARABIA rose 1.1% to 10,103
- KUWAIT fell 0.4% to 8,070
- Qatar gained 0.3% to 10,571
- Egypt fell 0.6% to 17,002
- BAHRAIN lost 0.4% to 1,932
- OMAN rose 1.9% to 4,753
- ABU DHABI gained 0.1% to 9,845
- DUBAI rose 0.6% to 3,438
(Reporting by Md Manzer Hussain, Editing by Ed Osmond)
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