© Archyde.com. A screen showing stock prices on the Saudi Stock Exchange in Riyadh – Photo from Archyde.com archive.
From Ateeq Sharif
(Archyde.com) – Stock markets in the Gulf ended on a mixed note on Tuesday, and the main index ended with losses that lasted for three sessions, supported by a rise following the kingdom denied the existence of talks to increase production.
Crude prices rose, a major catalyst for the performance of financial markets in the Gulf, following Saudi Arabia confirmed the commitment of the OPEC + group to production cuts, with the possibility of taking more measures to achieve balance in the market. Saudi statements supported prices despite the pressure of fears of a global recession and concern regarding cases of coronavirus infection in China.
The main index in Saudi Arabia rose 0.3 percent, supported by the rise of Banque Saudi Fransi (TADAWUL:) 3.6 percent, and the share of oil giant Aramco (TADAWUL:) 0.9 percent.
In Qatar, the main index fell 0.2 percent, to continue recording losses for the sixth session in a row, affected by a 2 percent drop in Qatar Islamic Bank.
Robert Wolf, Director of Operations at Emporium Capital, said that Qatari stocks continue to record sharp declines in light of the large fluctuations in prices.
Qatar Energy signed a 27-year agreement to supply China’s Sinopec with LNG, the longest agreement of its kind to date, as volatility prompts buyers to look for long-term supplies.
In Dubai, the main index fell 0.3 percent, affected by the decline of Dubai Islamic Bank (DFM:) 0.9 percent.
The main index in Abu Dhabi fell 0.1 percent.
Outside the Gulf region, the main index resumed its gains, closing up 1.4 percent, following a day that witnessed the end of six sessions of gains.
Wolf mentioned that the Egyptian market witnessed new gains, supported by investors’ interest in buying in large quantities.
He pointed out that “the main index remains subject to price corrections, given the significant rise it witnessed since last month.”
(Reporting by Marwa Gharib for the Arabic Bulletin – Editing by Ali Khafaji)
