Most stock markets in the Gulf rose in early trade on Tuesday, tracking Asian shares higher, with the Saudi benchmark index set to snap a four-day losing streak.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.2%, following a rebound in the final trading hour in New York as investors priced in an expected hefty interest rate hike by the US Federal Reserve on Wednesday.
Saudi Arabia’s benchmark index advanced 1.1%, on track to end four sessions of losses, buoyed by a 0.9% rise in Retal Urban Development Company. Retal said on Tuesday it signed a sub-development agreement with National Housing Company to develop 759 housing units with a total estimated cost of 864 million riyals ($229.85 million).
Saudi Arabia’s July crude oil exports gained for a second-straight month to their highest in more than two years, data from the Joint Organisation Data Initiative (JODI) showed on Monday.
Gulf stocks slide as interest hikes weigh on sentiment
Saudi Arabia’s exports rose 2.5% to 7.38 million barrels per day (bpd) in July - highest since April 2020 - from 7.20 million bpd in June.
Dubai’s main share index added 0.6%, with blue-chip developer Emaar Properties climbing 1.7%.
In Abu Dhabi, the index edged 0.1% higher, helped by 0.6% rise in International Holding Co (IHC), after the conglomerate said it decided to acquire 15% stake in Burjeel Holdings through unit.
The Qatari index leapt 1.3%, with 19 of the 20 stocks on the index in the black including the Gulf’s biggest lender Qatar National Bank, which was up 1.9%.
Crude prices, a key catalyst for the Gulf’s financial markets, steadied on concerns that further US interest rate hikes this week to tame inflation will curb economic growth and fuel demand in the world’s biggest oil consumer.
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