DUBAI: Most major Gulf markets rebounded on Thursday as investors appeared to look beyond the inflation-fuelled tightening monetary policy outlook, betting on improved oil-demand prospects in the long run.
Global oil demand growth will rebound strongly next year as China eases COVID lockdowns, the International Energy Agency said on Wednesday.
The Abu Dhabi index bounced back from a slight decline in the previous session when it snapped its longest winning streak in a month, picking up 0.5%.
“The Abu Dhabi stock market rebounded after investors absorbed Wednesday’s shock about inflation data in the US,” said Ahmed Fouad, Head of Sales at Emporium Capital. “The market could thus maintain strong increases in the coming days thanks to strong fundamentals.”
Abu Dhabi National Energy Company added 14.7% to a similar surge in the previous session after Multiply Group acquired a 7.3% stake in the group in a deal amounting AED 10 billion ($2.72 billion). Multiply Group also advanced 14.6%.
Heavyweight real estate shares led wider gains in Dubai equities pushing the index 0.9% higher.
The UAE is set to gain from eased COVID curbs in China, which the Gulf country counts as its largest trade partner.
Qatar’s index surged 1.3%, boosted by a sharp increase in natural gas prices.
“The spike followed the sidelining of energy price caps from the European Union while they were discussing solutions for the energy crisis,” added Fouad.
However, Saudi Arabia’s benchmark index slipped 0.5% with banking and petrochemical stocks leading the losses as the market remained exposed to volatile energy markets.
Egyptian blue chips dropped 1.1% on their third consecutive day of declines as worries persisted about the global economic growth outlook.
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