Most Gulf stock markets rebounded from early losses to close higher on Tuesday, buoyed by corporate earnings releases, although gains were limited by low oil prices. Oil prices, a catalyst for Gulf financial markets, edged lower as traders assessed potential supply disruptions after US guidance on ships passing through the Strait of Hormuz focused squarely on tensions between Washington and Tehran.
Iran, along with OPEC members Saudi Arabia, the United Arab Emirates, Kuwait and Iraq, export most of its crude oil through the strait, mainly to Asia. Saudi Arabia’s benchmark index reversed early losses to close 0.2% higher, helped by a 2.6% rise in petrochemical maker Saudi Basic Industries. Elsewhere, oil major Saudi Aramco rose 0.7%.
Performance across the sector was mixed. However, Daniel Takidin, co-founder and CEO of Sky Links Capital Group, said the outlook “remains supported by solid fundamentals in the non-oil sector, strong long-term economic growth forecasts, and legislative changes to improve market access for foreign investors.”
“Furthermore, market sentiment may soon be influenced by the upcoming announcement regarding the Public Investment Fund’s strategic refresh.”
In the biggest reset yet of Crown Prince Mohammed bin Salman’s economic transformation plan, Saudi Arabia’s $925 billion Public Investment Fund (PIF) is set to unveil a new five-year strategy this week, two people with direct knowledge of the matter said.
Dubai’s main stock index ended flat after six consecutive sessions of gains, with Salik falling 2.5% even as the toll operator reported an increase in annual profits. Elsewhere, Dubai Investments fell 2.1%, paring some of the previous market’s 4.3% gain on a strong increase in annual profits.
In the Abu Dhabi market, the index rose 0.2%, its seventh straight session of gains, helped by a 0.4% rise in Al Dar Properties. In last session, the developer soared more than 5% after posting a nearly 50% increase in fourth-quarter profits.
Outside the Gulf, Egypt’s blue-chip index rose 0.2%.
Saudi Arabia increased by 0.2% to 11,213 people Abu Dhabi increased by 0.2% to 10,651 people Dubai was flat at 6,772 people Egypt increased by 0.2% to 50,376 people Bahrain increased by 0.1% to 2,058 people Oman advanced by 1.9% to 6,892 people Kuwait lost 0.3% to 9,281 people
(Reporting by Ateeq Shariff in Bengaluru; Editing by Harikrishnan Nair and Tasim Zahid)
