Most major stock markets in the Gulf rose in early trade on Tuesday in line with oil prices and Asian shares buoyed by broad stimulus measures from China, although geopolitical tensions in the region limited gains.
Oil prices - a catalyst for the Gulf’s financial markets -rose on news of monetary stimulus from top importer China and concerns that tensions in the Middle East could hit regional supply, while a major hurricane loomed over the United States, the world’s biggest crude producer.
China’s central bank unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk and back towards the government’s growth target, but analysts warned more fiscal help was vital to hit these goals.
Saudi Arabia’s benchmark index advanced 0.7%, with aluminium products manufacturer Al Taiseer Group rising 0.9%.
Elsewhere, oil giant Saudi Aramco gained 0.4%.
Most Gulf markets extend gains on rate cuts; regional tensions weigh
Dubai’s main share index added 0.6%, with toll operator Salik Co jumping 3.5%.
In Abu Dhabi, the index edged 0.1% higher.
Israel’s military said on Tuesday it struck dozens of Hezbollah targets in southern Lebanon overnight, a day after it launched a wave of airstrikes against the Iran-backed group’s sites in Lebanon’s deadliest day in decades.
Hezbollah on Tuesday morning said it had attacked several Israeli military targets, including an explosives factory 60 km (37 miles) into Israel, with the Fadi series of rockets.
The Qatari benchmark fell 0.2%, hit by a 0.3% fall in the Gulf’s biggest lender Qatar National Bank.
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