DUBAI: Gulf indexes ended higher on Tuesday, with the Saudi index touching its highest level in 16 years, as tight supplies and stable demand drove oil prices higher ahead of peace talks between Russia and Ukraine.
Oil prices recovered some of the previous session’s losses as Kazakhstan’s supplies continued to be disrupted and major producers showed no sign of being in a hurry to boost output significantly.
Kazakhstan is set to lose at least a fifth of its oil production for a month after storm damage to mooring points used to export crude from the Caspian Pipeline Consortium (CPC), the energy ministry said.
“Saudi crude could see its price raised while the country keeps a bullish view on the market despite the risks to demand in China,” said Wael Makarem, senior market strategist – MENA at Exness.
Saudi Arabia’s benchmark index rose as much as 0.3% to 13,114.89, its highest since June 2006, as gains in material stocks were limited by losses in the energy sector.
Shares of Al Masane Al Kobra Mining Co jumped 30% in their debut on the exchange, rising as much as 81.9 riyals from their IPO price of 63 riyals.
Investors continued to flock to Dubai stocks after subscription for state utility Dubai Electricity and Water Authority’s (DEWA) IPO to raise as much as 8.06 billion dirhams ($2.19 billion) kicked off last week.
The Abu Dhabi index gained for the sixth consecutive session, closing up 0.7%.
Shares of Waha Capital rose 2.4% after the company approved a dividend distribution on Monday.
The Qatari index fell for a second straight session, ending 0.5% lower.
Outside the Gulf, Egypt’s blue-chip index rose 1.4%.
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