Most stock markets in the Gulf rose in early trade on Tuesday, tracking strength in Asian shares and oil prices, with the Abu Dhabi index outperforming the region led by a surge in International Holding Co (IHC).
The Abu Dhabi index jumped about 3%, its biggest intraday gain since May 2021, buoyed by a 7.8% surge in conglomerate International Holding Co. IHC, Abu Dhabi’s most valuable listed company, has called a shareholders meeting on Nov. 9, seeking their approval on entry of Infinity Wave Holding as a strategic shareholder in the company.
International Holding will acquire Infinity’s shares in Alpha Dhabi Holding, Multiply Group and Al Seer Marine in exchange for issuing capital increase share in the company.
IHC, which was trading at a record high, is also seeking shareholders approval to increase share capital to 2.19 billion dirhams ($596.26 million) from 1.82 billion dirhams.
Saudi Arabia’s benchmark index advanced 1.5%, with Al Rajhi Bank rising 2% and the kingdom’s largest lender Saudi National Bank climbing 3.4%.
Crude prices, a key catalyst for the Gulf’s financial markets, climbed on the back of a weaker US dollar and supply woes, although gains were capped by the spectre of lower fuel demand from China as it persists with its stringent zero-COVID policy.
OPEC+ member states have been lining up to endorse the cut to the output target after the White House accused Riyadh of coercing some other nations into supporting the move. Dubai’s main share index was up 0.4%, led by a 1.2% rise in sharia-compliant lender Dubai Islamic Bank.
Most Gulf bourses in red on falling oil prices; Egypt stocks jump
The United Arab Emirates (UAE) on Monday said it fully stands with Saudi Arabia in its efforts to support energy stability and security, UAE state news agency (WAM) reported, citing a foreign ministry statement.
In Qatar, the index added 0.6%, as all but one stock on the index were in positive territory including the Gulf’s largest lender Qatar National Bank.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.55%, as the dramatic U-turn in British fiscal policy bolstered investor sentiment.