Most Gulf markets gain on rising oil prices

Most stock markets in the Gulf ended higher on Thursday on the back of rising oil prices, with the Saudi index leading the gains.

Oil - a catalyst for the Gulf’s financial markets - rose by about 1%, extending gains amid concerns over Middle Eastern supply after disruptions at an oilfield in Libya and heightened tensions relating to the Israel-Hamas war.

Saudi Arabia’s benchmark index advanced 1.8%, buoyed by a 5% jump in Elm Co and a 6.9% surge in the country’s biggest lender Saudi National Bank.

However, petrochemical makers and cement companies were mostly in negative territory.

Several Saudi Arabian companies released regulatory filings late Wednesday and on Thursday, saying state energy company Saudi Aramco’s decision to raise feedstock and fuel prices for this year will increase production costs and reduce earnings.

Among the losers, Saudi Basic Industries Corp finished 1.7% lower, whereas Yamama Cement slid 3.2%.

Most Gulf markets rise on US rate cut bets; Qatar retreats

Separately, the kingdom estimates financing needs of about 86 billion riyals ($22.93 billion) in 2024 under a borrowing plan approved by Finance Minister Mohammed Al Jadaan, the National Debt Management Center (NDMC) said.

The Qatari benchmark increased 0.5%, with petrochemical firm Industries Qatar gaining 1.2%.

Dubai’s main share index was up 0.2%, helped by a 1.5% rise in toll operator Salik Co.

In Abu Dhabi, the index fell 0.7%.

Minutes of the Fed’s Dec. 12-13 meeting released on Wednesday showed a growing sense among policymakers that inflation was under control and raised concerns about the risks of “overly restrictive” monetary policy on the economy.

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

Outside the Gulf, Egypt’s blue-chip index eased 0.2%, hit by a 2.3% fall in tobacco monopoly Eastern Co.

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 SAUDI ARABIA     rose 1.8% to 12,145
 ABU DHABI        lost 0.7% to 9,650
 DUBAI            gained 0.2% to 4,087
 QATAR            added 0.5% to 10,434
 EGYPT            lost 0.2% to 25,350
 BAHRAIN          was up 0.5% to 1,973
 OMAN             eased 0.1% to 4,577
 KUWAIT           added 0.3% to 7,649
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