Gulf stocks end higher as Dubai outperforms regional peers; Saudi slips

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Gulf stocks end higher as Dubai outperforms regional peers; Saudi slips

On Sunday, a gauge of Gulf bourses had rounded off the day in an upbeat texture as UAE bourses had largely outperformed their regional peers following reveal of an IMF (International Monetary Fund) data showing that the Emirati economy would likely to be swung back to growth this year following a 6.6 per cent contraction last year, while Saudi’s main bourse plunged ahead of a scheduled rise of global oil output by 500,000 million barrels per day from January 5.

In point of fact, while a majority of Gulf stock indices had wrapped up the day modestly higher, eclipsing a recent rise in pandemic cases across the region, the day’s gain in Gulf bourses appeared to be catapulted by the IMF forecast on UAE’s economic growth that said the Emirati economy was expected to grow by 1.3 per cent this year.

Aside from that, a kickstart of vaccination campaign in Dubai alongside Abu Dhabi had ramped up investors’ morale, while Bank of America wrote in a client note that a recovery in United Arab Emirate’s economy would be tied to tis exposure to trade and tourism.

Notably, Dubai has been expected to host a six-month long global trade fare, dubbed as Expo 2021, spanning from October 1, 2021 to March 31, 2022, nonetheless, the Emirate of Dubai was forced to delay the event by a year due to a raft of pandemic-led restrictions.

Gulf stocks kickstarts 2021 modestly higher

On top of that, as IMF had forecasted a growth in UAE’s economy this year and a Bank of America client note had largely been in line with an IMF estimate, Dubai’s main index closed out the day 0.6 per cent higher with Emirates NBD rising roughly 2 per cent.

Emaar Properties winded down the session 1.4 per cent higher. Main index of Abu Dhabi added 0.7 per cent, mostly buoyed up by a 1.7 per cent upsurge in the shares’ prices of First Abu Dhabi Bank. Nonetheless, Saudi’s main index slipped as much as 0.9 per cent, as concerns were mounting on global demands of crude oil amid a likely supply glut in a near-term outlook, while Saudi Aramco, the world’s most profitably company by an unaudited basis, shed 0.4 per cent.

In tandem, outside the Gulf, Egypt’s blue-chip index ended the day mostly dithered. Elsewhere in the Gulf, Oman gained 0.6 per cent and Qatari bourse treaded water, while shares’ prices of Qatar fuel soared 1.2 per cent and Commercial Bank shrugged off 1.2 per cent.