Major Gulf markets track Asian shares higher

Major stock markets in the Gulf rose in early trading on Thursday, mirroring gains in Asian shares, as stronger-than-anticipated US economic data lured investors back into the markets.

Data on Wednesday showed that the US services sector activity increased to an eight-month high in October as new orders grew, while private payrolls rose 42,000 last month, exceeding expectations.

Saudi Arabia’s benchmark index gained 0.5%, on course to snap a five-day losing streak, with Al Rajhi Bank rising 0.7% and Saudi National Bank, the country’s biggest lender by assets, advancing 0.8%.

Elsehwere, Al-Babtain Power and Telecommunication Co advanced 5.2%, after reporting a 190% rise in third-quarter profit.

However, Riyadh Cement plunged more than 7%, set for its biggest intraday fall since April, following a steep fall in quarterly net profit.

Dubai’s main share index rose 0.6%, led by a 2.7% gain in toll operator Salik and a 1.1% increase in blue-chip developer Emaar Properties.

In the previous session, most Gulf markets declined, following global shares downward, as an overnight tech-driven sell-off on Wall Street highlighted concerns over elevated valuations.

In Abu Dhabi, the index edged 0.1% higher.

On the other hand, conglomerate International Holding slipped 0.2%, despite reporting a higher quarterly profit.

Oil prices, a catalyst for the Gulf’s financial markets, rose as oversupply concerns eased, after closing at two-week lows in the prior session on weaker demand.

The Qatari index climbed 0.4%, buoyed by a 2.2% jump in telecoms firm Ooredoo.