Most of the stock markets in the Gulf region closed higher on Tuesday, boosted by oil prices and global stock prices, ignoring fears that the spread of the Omicron strain would lead mutated from the Corona virus to slow the recovery of the global economy.
The main index in the Saudi market rose 0.3%, supported by the rise of the National Bank of Saudi Arabia 1.1%.
The Saudi Central Bank said it decided to extend the program of deferring payments to support private sector financing for a period of three months, ending on March 31.
Wassim Jumaa, head of investment at Capital Investments, said in an interview with “Al Arabiya” that inflation is the main story of 2022 for several reasons, because inflation is driven by demand as a result of the stimulus packages provided by countries of the world to support their economy during Corona.
He explained that inflation has become evident in the prices of goods, and may transfer to the prices of services. He stated that inflation is currently driven by the means of production, and this dilemma, as the Fed can print money, but it cannot improve supply chains.
Oil prices rose, a catalyst for Gulf financial markets, as investors interpreted expectations that oil producers in the OPEC + group will increase supplies at their meeting today, Tuesday, as an indication that demand for fuel is still strong despite the spread of the mutant Omicron.
In an interview with Al Arabiya, Alaa Al Ibrahim, head of the capital market funds sector at Alawwal Capital, expected that oil prices would remain between $70 to $80 for Brent crude, in order to support the performance of the Saudi financial market, despite expectations of sharp fluctuations in various global financial markets.
The main index of the Dubai market rose 0.8%, supported by the rise of Emirates NBD Bank 1.1% and Dubai Islamic Bank 0.9%.
Dubai has approved a budget for the fiscal years 2022, 2023 and 2024, with a total expenditure of 181 billion dirhams ($49 billion).
Farah Murad, senior market analyst in the Middle East and North Africa division at XTP, said the market was supported by an increase in the size of the budget and its positive impact on the economy.
The Doha Securities Market Index rose 0.4%, with Industries Qatar rising 1%.
In Abu Dhabi, the index fell 0.7%, with the Etisalat share down 2.2%.
Yesterday, Monday, the UAE, the commercial and tourist center in the region, recorded 2,515 new infections with the Corona virus. The main index of the Dubai market rose 0.4%, supported by a 1.1% increase in Emirates NBD Bank.
Outside the Gulf region, the leading stock index on the Egyptian Stock Exchange closed at a gain of 0.7%, with the share of the Egyptian Kuwait Holding Company rising by 4.9%.
