Most stock markets in the Gulf ended higher on Sunday, with the Qatari index outperforming the region, as a recent slide in commodity prices eased worries about inflation and the rate hike outlook.
Benchmark copper on the London Metal Exchange on Friday was 0.5% lower at $8,367 a tonne after touching $8,122.50, down 25% from a peak in March and the lowest level since February 2021. Other industrial metals also tumbled.
Copper is a bellwether for economic output with its wide range of industrial and construction uses.
In Qatar, the equities advanced 3.2%, its biggest intraday rise since April 2020, boosted by a 7.8% surge in petrochemical maker Industries Qatar.
Last week, the index suffered its biggest weekly loss in over 2 years on worries that aggressive interest rate hikes by the Federal Reserve and other major central banks to combat inflation could cause a recession.
Major Gulf bourses subdued on oil prices, inflation fears
Saudi Arabia’s benchmark index finished 1.8% higher, with Al Rajhi Bank rising 1.9% and Sahara International Petrochemical Company climbing 5.3%.
The Saudi stock exchange Tadawul plans to launch single stock futures on July 4, which will enable local and international investors to hedge and manage portfolio risks more effectively.
Oil prices, a key catalyst for the Gulf’s financial markets, settled up by more than $3 a barrel on Friday, supported by tight supply.
Outside the Gulf, Egypt’s blue-chip index closed flat, as gains in financial shares were offset by declines information technology sector.
Egypt’s central bank kept its overnight interest rates unchanged on Thursday, saying that for the next six months it would tolerate elevated inflation, caused mainly by the Ukrainian conflict, as the economy grows more slowly than expected.
SAUDI ARABIA rose 1.8% to 11,513
QATAR added 3.2% to 12,130
EGYPT was flat at 9,444
BAHRAIN eased 0.4% to 1,810
OMAN rose 0.1% to 4,119
KUWAIT gained 1.3% to 8,125
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