Saudi Arabia stocks advanced on Wednesday for a seventh straight session, buoyed by prospects of OPEC+ producers delivering a big cut in crude oil output.
The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, together called OPEC+, will meet in Vienna to discuss output cuts of up to 2 million barrels per day (bpd), Reuters reported on Wednesday, citing an OPEC source.
Saudi Arabia is a part of OPEC.
JP Morgan said OPEC+ oil-producing countries would cut production with or without an agreement at their meeting later in the day, with prices likely to retest $100 a barrel in the fourth quarter due to a supply deficit.
Oil prices, a key factor for the Gulf’s financial markets, were little changed ahead of the meeting of OPEC+ producers after gaining more than 3% in the previous session.
Saudi Arabia’s benchmark stock index advanced 0.8%, boosted by a 1% rise in Al Rajhi Bank.
Dubai’s main share index added 0.1%, helped by a 0.8% increase in blue-chip developer Emaar Properties.
Major Gulf markets mixed in early trade; Saudi extends gains
The United Arab Emirates’ non-oil private sector maintained brisk activity growth in September, albeit at a slightly slower pace than August, as new business drove gains in output and employment, a survey showed.
In Abu Dhabi, the benchmark stock index was up 0.1%. The Qatari index rose 0.5%, extending gains from the previous session, when the index saw its biggest intraday gain in more than four years.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 2.3%, as investors grew hopeful future global interest rate rises might become less aggressive amid early signs previous policy tightening was working to temper price pressures in some major world economies.