Most Gulf Markets Rise While Saudi Extends Losses As Oil Prices Slump

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Credit: energepic.com/Pexels
  • Oil prices slipped on Monday as concerns about demand recovery in China offset support from lower supplies from Canada and OPEC+ producers.
  • Saudi Arabia’s benchmark stock index (.TASI) fell 0.2%, as almost all the sectors slipped, with material and energy stocks leading the losses.
  • The benchmark stock index (.QSI) in Qatar edged up 0.2%, its second session of gains, as almost all the sectors in the index gained.

Most major Gulf stock markets opened higher on Monday, while Saudi Arabia’s benchmark index extended its losses as lower oil prices and concerns over U.S. debt ceiling negotiations dampened investor sentiment.

Gulf market rise

Oil prices — a key catalyst for Gulf’s financial markets — slipped on Monday as concerns about demand recovery in China offset support from lower supplies from Canada and OPEC+ producers, with Brent crude futures falling 73 cents, or 0.97%, to $74.85 a barrel by 0634 GMT.

U.S. President Joe Biden and House Republican Speaker Kevin McCarthy will meet to discuss the debt ceiling later in the day, less than two weeks before the June 1 deadline after which Treasury expects the federal government will struggle to pay its debts.

Saudi’s market in loss

Saudi Arabia’s benchmark stock index (.TASI) fell 0.2%, as almost all the sectors slipped, with material and energy stocks leading the losses.

Saudi Arabian Mining Co (Ma’aden) (1211.SE), the largest miner in the Gulf, fell nearly 3% after reporting an over 80% slump in its first-quarter net profit to 419.4 million riyals ($111.84 million) year-on-year.

Oil prices slump

The state oil giant and index heavyweight Saudi Aramco (2222.SE) was down 0.3%.

Dubai’s main share index (.DFMGI) edged 0.1% higher, following two consecutive sessions of losses, supported by a 1.7% rise in Emirates Central Cooling Systems Corporation (EMPOWER.DU) and a 0.4% gain in Dubai’s largest lender Emirates NBD Bank (ENBD.DU).

Benchmark index stock

In Abu Dhabi, the benchmark index (.FTFADGI) rose 0.1%, boosted by a 2.1% jump in Alpha Dhabi Holding (ALPHADHABI.AD) and a 0.1% gain in First Abu Dhabi Bank (FAB.AD), UAE’s largest lender.

The benchmark stock index (.QSI) in Qatar edged up 0.2%, its second session of gains, as almost all the sectors in the index gained, with Qatar Gas Transport Nakilat (QGTS.QA) climbing 1.1% and heavyweight Commercial Bank (COMB.QA) advancing 0.3%.

($1 = 3.7501 riyals)

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Source: Reuters