Most Gulf stock markets closed higher, Monday, with oil prices rising after the OPEC + group announced more production cuts in an unexpected move.
The main index of the Saudi Stock Exchange rose 1.6 percent, supported by a jump of 5.9 percent for the share of Riyad Bank, and the rise in the share of Retal Urban Development Company by 1.2 percent.
And Saudi Arabia announced that it would cut production by 500,000 barrels per day. The Saudi Ministry of Energy said that the voluntary cut is a precautionary measure from the Kingdom aimed at supporting the stability of the oil market.
Ahmed Najm, head of market research for the Middle East and North Africa at XS.com, said that the reopening of the Chinese economy may also lead to a rise in Saudi oil exports, despite some lower-than-expected data for the manufacturing sector in China.
The main index on the Dubai Stock Exchange closed up 0.9 percent, with the leading share of Emaar Properties rising 3.2 percent.
The Abu Dhabi market index rose 0.8 percent.
The Qatari index closed up 2 percent, ending a three-session losing streak after Qatar National Bank, the Gulf’s largest lender, rose 3.7 percent.
Outside the Gulf region, the Egyptian blue-chip index rose 2.2 percent, with most stocks listed on the index rising, including the Commercial International Bank, which rose 1.9 percent.
On Thursday, the Central Bank of Egypt raised overnight interest rates by 200 basis points after the Monetary Policy Committee meeting, saying it was a measure aimed at keeping inflation under control.
Negm said that the central bank’s decision to raise interest rates may push the banking sector up, given the possibility of improving profit margins.
He added that the move could also contribute to attracting the interest of international investors, as it shows the bank’s steps to curb high inflation.
(Reuters)
