The Saudi market soars on support from oil prices, and the country continues to lose, according to Reuters

From Ateeq Sharif

(Reuters) – Gulf stock markets closed on mixed notes on Tuesday as the major index closed with losses that lasted for three sessions, buoyed by a rally after the kingdom denied there were talks to boost output .

Crude oil prices, an important catalyst for the performance of the Gulf financial markets, rose after Saudi Arabia confirmed the OPEC+ group’s commitment to production cuts, with the possibility of adopting further measures to rebalance the market. The Saudi statements supported prices despite pressure from fears of a global recession and concern over cases of coronavirus infection in China.

The leading index in Saudi Arabia rose 0.3%, supported by Banque Saudi Fransi (TADAWUL:) gaining 3.6% and oil giant Aramco’s (TADAWUL:) share gaining 0.9%.

In Qatar, the main index fell by 0.2%, continuing to post losses for the sixth consecutive session, influenced by the 2% drop in the Qatar Islamic Bank.

Robert Wolf, director of operations at Emporium Capital, said that Qatari shares continue to post steep declines in light of the large price fluctuations.

Qatar Energy has signed a 27-year LNG supply deal to China’s Sinopec, the longest deal of its kind to date, as volatility drives buyers to seek long-term supplies.

In Dubai, the main index fell by 0.3%, influenced by the decline of the Dubai Islamic Bank (DFM:) by 0.9%.

The Abu Dhabi main index also fell by 0.1%.

Outside of the Gulf region, the major index resumed its gains, finishing 1.4% higher after a day that saw the end of six sessions of gains.

Wolf said the Egyptian market has seen fresh gains, buoyed by investor interest in buying in bulk.

He stressed that “the major index remains subject to price corrections given the significant increase it has seen since last month.”

(Reporting by Marwa Gharib for the Arab Bulletin – Editing by Ali Khafaji)