Qatar stock market closed higher on Sunday in response to rising oil prices amid supply cuts by top producers, while the Saudi index ended lower on weaker corporate earnings.
Oil prices - a key catalyst for the Gulf’s financial markets - rose on Friday and notched a sixth straight week of gains as investors were optimistic that healthy demand and supply cuts will keep prices buoyant.
Saudi Arabia on Thursday extended a voluntary oil production cut of 1 million barrels per day to the end of September. Russia has also elected to reduce its oil exports by 300,000 barrels per day next month.
Major Gulf equities track oil, Asian shares lower
The Qatari Stock index advanced 0.2%, ending two sessions of losses, with Baladna climbing 3% and Qatar Fuel gaining 1%.
The index heavyweight Islamic banks Qatar Islamic Bank and Qatar International Islamic Bank added 2.2% and 1.1% respectively.
Saudi Arabia’s benchmark index continued its losses for a seventh consecutive session, ending 0.2% lower, with
Savola Group dropping 5.5% and Halwani Brothers plunging 8.9%.
The food products distributor Halwani reported higher losses in second quarter compared to a year earlier.
Outside the Gulf, Egypt’s blue-chip index climbed 1.4%, snapping three-session losses with all sectors in the green.
The index was lifted by a 11.3% jump in Misr El Gadida Housing and a 4.2% rise in El Sewedy Electric.
SAUDI ARABIA fell 0.2% to 11,351
QATAR rose 0.2% to 10,821
EGYPT surged 1.4% to 17,967
BAHRAIN ended flat to 1,982
OMAN fell 0.5% to 4,760
KUWAIT added 0.1% to 7,942