Saudi index gains on the rise of crude oil prices as financials hurt Dubai

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Saudi index gains on the rise of crude oil prices as financials hurt Dubai

On Sunday, the 10th of May 2020, at a thin-volume trading day in the Mideast, a majority of Gulf stock exchanges were closed, however, the Saudi’s main index had reported a robust rise in line with the crude oil futures’ prices despite media speculations on Saudi Aramco’s restructuring talks on SABIK takeover deal, while the a heavy downfall of the financials drove the Dubai stock exchange down.

In point of fact, Sunday’s (May 10th) rally of the Saudi stocks were almost entirely catapulted by a cataclysmic collapse on US drilling rig count that fell to a 80-year-low figure last week, eventually spurring up crude oil futures’ prices over optimisms production cut, while the Saudi’s state-backed oil giant, Aramco gained 0.5 per cent despite media reports on Aramco’s restructuring talks over a takeover of SABIC (Saudi Basic Industries Corporation) following a staggering 40 per cent nosedive of the Saudi petrochemical maker's market cap stemmed from the multi-year low crude oil futures’ prices.

Nonetheless, Saudi’s main index had wrapped up the day 0.8 per cent higher with Saudi British Bank and Saudi French Bank gaining 4.8 per cent and 3.7 per cent respectively. Elsewhere in the Gulf, Dubai’s main index fell by 1.1 per cent with Dubai Islamic Bank down by 1.7 per cent, while the Abu Dhabi’s main index had rounded off the day down by 1.4 per cent despite a rise of the country’s largest lender, First Abu Dhabi Bank by 2.3 per cent.

Meanwhile, Qatar index added 1.2 per cent after S&P had affirmed the Arab nation’s credit rating at “AA-” with outlook stable, while the Egyptian stock exchange had winded up the day 0.8 per cent higher.