Gulf stocks gain on oil price surge, upbeat corporate earnings


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Gulf stocks gain on oil price surge, upbeat corporate earnings

On Sunday, the 17th of May 2020, a gauge of Gulf stock indices had wrapped up the day with sharp gains across the boards following a jump in crude oil prices and a sharp downturn in US drilling rigs’ counts, while a raft of positive corporate earnings’ report alongside an ease of lockdown, had added to investors’ optimism.

In point of fact, US West Texas Intermediate crude futures’ prices had rounded off Friday’s (May 15th) market 7 per cent higher and the UK crude futures’ prices climbed 4.4 per cent to $32.50 per barrel, as oil demands showed shimmering ray of hope following a 3.9 per cent rise of April industrial activity in China, while media headlines of potential supply cuts from Saudi which could amount to roughly 1 per cent of the world’s entire crude output alongside a sharp downturn in US shale activities with growing possibilities of a higher number of bankruptcies for small-scale on-shore US oil drilling companies had buoyed up a majority of Gulf stock indices.

Citing statistics, Saudi Arabia’s main index gained 1.6 per cent on Sunday (May 17th) with Saudi Aramco adding 1.8 per cent to 31.95 Saudi Riyal per share, just a notch shy of its IPO price of 32 Saudi Riyals, while Dubai rose by 0.9 per cent following the Dubai-listed financial stocks’ strongest intra-session leapfrog of 14.9 per cent since the Great Depression of 2007-2009, Elsewhere in the Gulf, on Sunday’s (May 17th) market wrap up, Abu Dhabi’s main index shed 0.1% and the Qatari bourse had shrugged off 0.4%, while money markets in Bahrain, Oman and Kuwait added 0.4%, 0.5% and 2.4% respectively.