Most Gulf bourses rise tracking oil prices; financials boost Saudi

DUBAI: Most stock markets in the Gulf ended higher on Wednesday, as oil prices jumped after the International Energy Agency said three million barrels a day of Russian oil and products could be shut in from next month.

Oil prices, a key factor for the Gulf’s financial markets, climbed 4%, with the Benchmark Brent crude futures adding $4 to $102.02 a barrel by 0926 GMT.

“Gulf Cooperation Council stock markets were mostly performing positively today while investors return to the market to buy the dip after a week of price corrections,” wrote Miguel Rodriguez, chief market analyst at CAPEX.com.

Rodriguez added uncertainties on the supply availability of oil amid rising COVID-19 cases in China are still weighing on sentiment. The Qatari benchmark gained 0.9%, buoyed by a 7.5% rise in Investment Holding Group after the real estate financier secured regulatory approval to buy out Elegancia Group.

Saudi Arabia’s benchmark index advanced 0.9%, with Saudi Industrial Investment Group jumping 7%.

The index was boosted by financial companies such as Bupa Arabia, Salama Cooperative Insurance, and Bank Aljazira. “The Saudi stock market saw its main index rise thanks to the expected boost IPOs could bring to the market throughout this year. This comes in parallel to the solid economic growth recorded in the country,” said Rodriguez.

IPO activity in Saudi has been seeing a recent boom following the listing of Saudi Aramco in 2019.

In Abu Dhabi, the index added 0.2%, while Dubai’s main share index advanced 1.1%. Heavyweights Dubai Financial Market and Emaar Development boosted Duabi’s main index.

Outside the Gulf, Egypt’s blue-chip index edged 0.2% higher.

SAUDI ARABIA rose 0.9% to 12,769

ABU DHABI up 0.2% to 9,608

DUBAI added 1.1% to 3,410

QATAR gained 0.9% to 13,398

EGYPT up 0.2% to 10,726

BAHRAIN firmed 0.2% to 1,965

OMAN rose 0.1% to 4,316

KUWAIT was flat at 8,694.