Gulf stocks rise on firmer oil, earnings; Dubai hits new record high

BENGALURU: Most Gulf stock markets rose on Wednesday, tracking firmer oil prices and upbeat corporate earnings, while investors assessed the potential market fallout from escalating Middle East tensions.

Oil - a key driver for Gulf equities - climbed after reports of a drone attack, an incident involving a tanker in the Strait of Hormuz, and a sharp decline in U.S. crude inventories. Brent crude futures were up 0.2% at $67.46 a barrel by 1240 GMT.

The Abu Dhabi benchmark index rose 0.7% to hit a more than 3-year high at 10,542, with most stocks advancing. ADNOC Gas added 1.3% and Abu Dhabi Islamic Bank gained 3.5%. NMDC Energy rose 2.3% after reporting a 14% increase in full-year net profit and a 14% rise in cash dividends.

Dubai’s benchmark stock index extended its rally to a third straight session and rose 0.7% to 6,662, a fresh record high since 2006.

Emirates NBD, the emirate’s largest lender, rose 3.1%, while Tecom Group climbed 4.1% after the business-district operator posted a 70% jump in full-year profit.

Separately, the UAE’s non-oil private sector recorded the fastest growth in new business in nearly two years in January, driven by a sharp rise in new orders, a survey showed on Wednesday.

Saudi Arabia’s benchmark stock index edged up 0.1%, aided by materials, utilities and finance. Saudi Arabian Mining Co gained 2.2%, and ACWA Power rose 1.4% after the company said it had signed an energy conversion and water purchase deal with a value of about $4.1 billion.

Al Majed For Oud surged 6% to 157 riyals per share, its highest level in nearly a year. The perfume maker reported a 38.6% rise in full-year net profit.

The Qatari benchmark index slipped 0.3%, pressured by a 1.3% decline in Industries Qatar , while Gulf International Services dropped 8.3% after reporting a 5% fall in full-year net profit.

Outside the Gulf, Egypt’s blue-chip index climbed 1.3% with all sectors in the green. Commercial International Bank rose 2.6% while Talaat Moustafa Group added 2%.

Egypt’s non-oil private sector output grew for the third consecutive month in January, marking the longest period of expansion since late 2020, S&P Global reported on Tuesday, but demand conditions eased.