Saudi index gains on rising oil prices; most Gulf bourses muted

Saudi Arabia’s stock market ended higher on Monday amid rising oil prices, although most Gulf bourses were subdued on concerns about global financial conditions.

Oil prices edged up in choppy trading as China’s continuation of loose monetary policy was partly offset by fears that high inflation and energy costs could drag the global economy into recession.

Oil supply is likely to remain tight after OPEC and allies including Russia pledged on Oct. 5 to cut output by 2 million barrels per day while a war of words between OPEC’s de facto leader Saudi Arabia and the United States could foreshadow more volatility.

The benchmark index in Saudi Arabia advanced 1.4%, buoyed by a 2.9% rise in Retal Urban Development Co and a 2.1% increase in Al Rajhi Bank.

On Sunday, OPEC+ member states lined up to endorse the steep cut to its output target agreed this month after the White House accused Saudi Arabia of coercing other nations into supporting the move.

The United States last week said the cut would boost Russia’s foreign earnings and suggested it had been engineered for political reasons by Saudi Arabia, which on Sunday denied it was supporting Moscow in its invasion of Ukraine.

In Qatar, the index ended flat.

The Abu Dhabi index fell 0.4%, hit by a 1% fall in telecoms firm e&, formerly known as Emirates Telecommunications.

Outside the Gulf, Egypt’s blue-chip index finished 0.9% higher, extending gains for a second session, as most of the stocks on the index were in positive territory.

International Monetary Fund (IMF) officials have resolved all major policy issues with Egyptian authorities in their discussions on a new lending programme, IMF Managing Director Kristalina Georgieva said on Friday.

Egypt has been pushing to tie up a new IMF package during the annual meetings of the IMF and World Bank in Washington this week, hoping to stem a currency crisis that has restricted imports and sparked market unease over foreign debt repayments.

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 SAUDI ARABIA    rose 1.4% to 11,566
 ABU DHABI       down 0.4% to 9,742
 DUBAI           was flat at 3,377
 QATAR           closed flat at 12,640
 EGYPT           up 0.9% to 10,148
 BAHRAIN         ended flat at 1,867
 OMAN            fell 0.4% to 4,510
 KUWAIT          added 0.1% to 7,767
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