Major Gulf bourses gain on rising oil prices

2 minute read

Saudi woman walks at the Saudi stock market (Tadawul), in Riyadh, Saudi Arabia March 9, 2020. REUTERS/Ahmed Yosri

Register now for FREE unlimited access to

Aug 24 (Reuters) - Major stock markets in the Gulf rose in early trade on Wednesday, in response to a surge in oil prices in the previous session, with the Qatari index on track to end three sessions of losses.

Crude prices, a key catalyst for the Gulf's financial markets, jumped nearly 4% the previous day after the energy minister of Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), flagged the possibility the group would cut supply to balance a market he described as "schizophrenic". read more

Oil prices have dropped in recent weeks to around $95 per barrel from as high as $120 on fears of a Chinese economic slowdown and a recession in the West.

Register now for FREE unlimited access to

The benchmark index (.TASI) in the kingdom added 0.2%, led by a 0.8% increase in oil behemoth Saudi Aramco (2222.SE).

However, Saudi Arabian supermarket retailer BinDawood Holding (4161.SE) fell around 4% after it reported a fall in quarterly earnings.

Brent crude futures for October settlement were up 84 cents, or 0.83%, to $101.04 a barrel by 0820 GMT, after rising 3.9% on Tuesday.

Dubai's main share index (.DFMGI) gained 0.4%, bolstered by a 0.9% rise in blue-chip developer Emaar Properties (EMAR.DU).

Emaar Properties said on Tuesday Namshi deal will result in net profit of 628.7 million dirhams ($171.17 million).

On Saturday, Emaar said it is selling fashion e-commerce venture Namshi to Noon, an e-commerce company backed by Dubai billionaire Mohamed Alabbar and Saudi Arabian sovereign fund the Public Investment Fund (PIF). read more

Deal values Namshi at $335.2 million.

In Abu Dhabi, the index (.FTFADGI) added 0.1%, helped by a 0.1% gain in the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD).

The Qatari index (.QSI) climbed 0.5%, with Qatar Islamic Bank (QISB.QA) putting on 0.8% and sharia-compliant lender Masraf Al Rayan (MARK.QA) trading 1.1% higher.

($1 = 3.6729 UAE dirham)

Register now for FREE unlimited access to
Reporting by Ateeq Shariff in Bengaluru; Editing by Krishna Chandra Eluri

Our Standards: The Thomson Reuters Trust Principles.