Saudi bourse springs up on rising oil prices; Egypt falls

A basket of Gulf bourses jumped up on Sunday following Friday’s sharp gain in crude oil futures’ prices

by Sourav D
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Saudi bourse springs up on rising oil prices; Egypt falls

A basket of Gulf bourses jumped up on Sunday following Friday’s sharp gain in crude oil futures’ prices, while Egypt’s main index ended in negative territory following a multi-session long rally. In the matter of the fact, in the day’s large-scale gain in Saudi bourses was almost entirely galvanized by a broad-based gain in crude oil contracts’ prices, as Gulf investors’ morale is traditionally linked with oil futures’ prices.

On Friday, both US and UK crude oil futures’ prices wrapped up the session more than 5 per cent higher amid growing uncertainty around future rate-hikes from the US Fed, while a curb on Russian outflow into EU had feathered up the prices further.

On top of that, possibilities of an increase in demand following China’s latest move to ease some of its pandemic restrictions had added to further optimism.

Gulf bourses end higher as oil prices rise sharply

Citing statsitics, in the day’s Gulf market wind-down, Saudi Arabia’s benchmark index rose 0.7 per cent with the Kingdom’s state-backed oil giant Aramco rising as much as 0.5.

Al Rajhi Bank climbed 0.5 per cent. Outside the Gulf, Egypt’s blue-chip index shrugged off 0.7 per cent with the shares’ prices of Commercial International Bank plummeting 0.3 per cent. Elsewhere in the Gulf, Qatari Bourse rose 0.8 per cent with Qatar’s largest lender, Qatar National Bank taking a giant leapfrog of as much as 1.9 per cent.

Aside from that, global credit rating agency S&P had raised Qatar’s long-term credit rating to AA+ from a prior AA-, eventually adding to a boost to Qatari bourse. Besides, Bahrain dropped 0.1 per cent and Oman gained 0.4 per cent, while Kuwaiti bourse climbed as much as 1.0 per cent.

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