Most Gulf bourses rise on signs of easing Russia-Ukraine tensions

Most stock markets in the Gulf ended higher on Tuesday, with the Saudi index leading gains, as investors took confidence from Russia saying that some of its troops were returning to their bases.

Russia said on Tuesday some of its military units were returning to their bases after exercises near Ukraine, days after warnings from the United States and Britain that Moscow might invade its neighbour at any time. read more

It was not clear how many units were being withdrawn and by what distance, after a build-up of an estimated 130,000 Russian troops to the north, east and south of Ukraine.

Oil prices fell down from the seven-year high hit on Monday.

Saudi Arabia’s benchmark index (.TASI) advanced 1.2%, closing at its highest in more than 15 years, led by a 4% rise in Al Rajhi Bank (1120.SE).

On the other hand, Sahara International Petrochemical Company (2310.SE) dropped more than 2% after it said on Monday that its plants Al Waha And SAMAPCO would go on scheduled maintenance.

The Saudi stock market could continue recovering with oil prices staying at higher levels and initial public offerings continuing, said Daniel Takieddine, chief executive officer of MENA BDSwiss.

“The market could also benefit from stabilizing inflation levels while the economy remains strong.”

Dubai’s main share index (.DFMGI) gained 1%, with sharia-compliant lender Dubai Islamic Bank (DISB.DU) rising 1.9% and budget airliner Air Arabia (AIRA.DU) jumping 6.9%.

The airline swung to a full-year profit and proposed a dividend.

Elsewhere, blue-chip developer Emaar Properties (EMAR.DU) added 1.2%, a day after saying it had recorded its highest ever property sales in 2021.

In Abu Dhabi, the index (.ADI) concluded 0.3% higher, hitting a record high.

According to Takieddine, the Abu Dhabi market could see further increases thanks to the dynamic IPO scene.

Fertilizer firm Fertiglobe (FERTIGLOBE.AD) climbed 3.7% after reporting a rise in fourth-quarter earnings.

The Qatari index (.QSI) firmed 0.2%, helped by a 2.5% rise in Mesaieed Petrochemical (MPHC.QA).

Outside the Gulf, Egypt’s blue-chip index (.EGX30) rose 1.4%, as most of the stocks on the index were in positive territory, including Commercial International Bank (COMI.CA), which was up 2.4%.

Reporting by Ateeq Shariff in Bengaluru; Editing by Amy Caren Daniel

This article was originally published by Reuters.