Markets gain ahead of expected Russia sanctions, Egypt falls over 1pc

DUBAI: Most Gulf markets closed up on Tuesday as traders across the globe tracked fresh sanctions on Russia, while sentiment in Egypt remained muted on fear of higher commodity prices.

The United States and Europe were planning new sanctions to punish Moscow over civilian killings in Ukraine, and President Volodymyr Zelenskiy warned more deaths were likely to be uncovered in areas seized from Russian invaders.

With investors waiting on the new batch of sanctions - most likely on Wednesday according to France’s European Affairs Minister - oil was up 1%, lifting benchmark German Bund and US Treasury bond yields due to the prospect of higher global inflation. Egypt’s main share index ended lower for the second day, closing 1.3% down, as financials and material stocks weighed.

“The Egyptian stock market remains exposed to the effects of the conflict in Ukraine as commodities prices put pressure on non-oil sectors,” said Farah Mourad, senior market analyst at XTB MENA.

Saudi Arabia’s benchmark index gained 0.3%.

The world’s top oil exporter raised crude prices for all regions, with those to Asia hitting all-time highs, as disruption in Russian supplies supported prices, according to a pricing document seen by Reuters on Monday.

In Dubai, the main share index reversed early gains to end 0.5% lower.

Investors are looking to book their profits in the region after state utility DEWA’s IPO subscription brought cheer last week.

Shares of Gulf Navigation gained 5%, a day after the company signed deals for a gas project in Sharjah.

Abu Dhabi’s benchmark index gained 0.3%, while Qatar’s main index inched up 0.8%.

SAUDI ARABIA up 0.3% to 13,207

ABU DHABI rose 0.3% to 10,090

DUBAI lost 0.5% to 3,502

QATAR rose 0.8% to 13,670

EGYPT shed 1.3% to 11,381

BAHRAIN was up 0.6% to 2,094

OMAN rose 0.2% at 4,137

KUWAIT gained 0.9% to 9,049.