Saudi Arabia’s stock market rose in early trade on Wednesday, tracking oil prices higher on optimism over China’s recovery, although the Qatari index was on course to extend losses for a sixth session.
Oil prices - a key catalyst for the Gulf’s financial markets - rose around 1%, extending early gains on optimism that the lifting of China’s strict COVID-19 curbs will lead to a recovery in fuel demand in the world’s top oil importer.
Saudi Arabia’s benchmark index was up 0.2%, helped by a 1.2% rise in Saudi Arabian Mining Co.
Most Gulf markets in red tracking Asian shares, oil lower
China’s economic growth slowed sharply to 3% in 2022, missing the official target of around 5.5% and marking its second-worst performance since 1976. But the data still beat analysts’ forecasts after China started rolling back its zero-COVID policy in early December. Analysts polled by Reuters see 2023 growth rebounding to 4.9%.
OPEC said on Tuesday Chinese oil demand would rebound this year due to relaxation of the country’s COVID-19 curbs and drive global growth, and sounded an optimistic note on the prospects for the world economy in 2023.
The Qatari index eased 0.1%, hit by a 3.3% slide in Commercial Bank.
Dubai’s main share index dropped 0.2%, on track to end a four-session winning streak, with sharia-compliant lender Dubai Islamic Bank losing more than 1%.
Among other losers, blue-chip developer Emaar Properties was down 0.3%.
Residential property prices in Dubai are expected to rise at a slower pace in 2023 after a record year that saw a more than 60% increase in total units sold, according to one of the city’s biggest real estate consultancies.
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