Most Gulf bourses rises as oil prices steady

Most stock markets in the Gulf rose in early trade on Tuesday, as crude prices bounced back after a sharp drop in the previous session.

Oil prices, a key catalyst for the Gulf’s financial markets, steadied as worries over China’s fuel demand were soothed by the central bank’s pledge to support an economy hit by renewed COVID-19 curbs.

On the supply side, analysts said the phasing out of Russian oil from the market would continue to support prices.

Saudi Arabia’s benchmark stock index (.TASI) rose 0.3%, helped by a 2% gain in Saudi Arabian Mining Company (1211.SE) after the Capital Market Authority approved its request for capital increase through an issuance of bonus shares.

Among other gainers, oil behemoth Saudi Aramco (2222.SE) added 0.2%.

Ratings agency Fitch on Monday revised its outlook for Aramco to “positive” from “stable”, citing a similar action on the country. read more

In Qatar, the index (.QSI) gained 0.5%, with Commercial Bank (COMB.QA) rising 2%.

Separately, a British judge will on Tuesday rule whether Airbus must keep building A321neo jetliners for estranged Qatar Airways in a decision with implications for future multi-billion-dollar jet deals, as their public bust-up returns to London’s High Court. read more

The Abu Dhabi index (.FTFADGI) was up 0.8%, boosted by a 2.1% rise in conglomerate International Holding (IHC) (IHC.AD).

Multiply Group (MULTIPLY.AD), which counts state-linked IHC as a major shareholder, swung to profit in the first quarter of 2022.

Dubai’s main share index (.DFMGI), however, traded flat as gains in financials countered declines in telecoms and industrial stocks.

Reporting by Ateeq Shariff in Bengaluru; Editing by Subhranshu Sahu

This article was originally published by Reuters.