Saudi Arabia’s stock market ended higher on Tuesday on rising oil prices, while the Egyptian bourse eased after four sessions of gains.
Crude prices - a catalyst for the Gulf’s financial markets - rose after OPEC+ plans to cut more production jolted markets on Monday, with investor attention shifting to demand trends and the impact of higher prices on the global economy.
The OPEC+ production curbs led many analysts to raise their Brent oil price forecasts to around $100 per barrel by year-end. Goldman Sachs lifted its forecast for Brent to $95 a barrel by the end of this year, and to $100 for 2024.
Saudi Arabia’s benchmark index advanced 1.3%, buoyed by a 2% rise in Al Rajhi Bank and a 2.7% leap in Saudi National Bank.
The kingdom’s non-oil business activity continued to expand at a strong rate in March, a monthly survey showed, boosted by an increase in new orders, although the pace of growth slowed from the previous month.
The Saudi stock market continued to show strong gains supported by oil price increases and positive local fundamentals, said Farah Mourad, Senior Market Analyst of XTB MENA.
Most Gulf markets gain as oil surges on surprise OPEC+ output cuts
Outside the Gulf, Egypt’s blue-chip index eased 0.3%, ending four sessions of gains.
Mourad said changing global sentiment could affect prices on the Egyptian market after a strong performance last month.
“At the same time, traders reacted to data on the difficulties that the local economy is facing. Inflation remains a negative factor. As a result, international investors could continue to leave the market.”
Dubai’s main share index gained 0.5%.
In Qatar, the index climbed 0.9%, extending gains from the previous session, with Qatar Islamic Bank closing 2.1% higher.
======================================= SAUDI ARABIA rose 1.3% to 10,945 ABU DHABI was flat at 9,504 DUBAI was up 0.5% to 3,455 QATAR gained 0.9% to 10,396 EGYPT lost 0.3% to 16,998 BAHRAIN ended flat at 1,889 OMAN lost 0.1% to 4,786 KUWAIT dropped 0.8% to 7,746 =======================================
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