On Sunday, a gauge of Gulf equity indices had rounded off the session with solid gains, tracing a global-scale rally on Friday that witnessed a majority of Asian and European stock exchanges winding up the day at their record closing highs along with all three key indices of Wall Street, while a sharp upswing in crude oil futures’ prices had added to investors’ optimisms.
If truth is to be told, a number of key fundamentals had acted as major market movers in the Mideast on Sunday with all regional benchmark equity indices registering robust gains, while investors’ optimism mostly buoyed up over hopes that a Democrat-led both chambers in the US Congress would unleash a larger stimulus package, eventually leading to a hypnotic rise in investors’ morale.
Aside from that, both US WTI (West Texas Intermediate) and UK crude futures’ prices rose roughly 3 per cent on Friday following OPEC-Kingpin Saudi Arabia’s voluntary output cut of 1 million barrels per day, wrapping up the week at an eleven-month-peak, which in effect had soared petrochemical stocks in the region.
On top of that, market participants’ sentiments boosted up further as Dubai, Doha and Riyadh appeared to be closing in to restore their trade relationships following a three-year long dispute over Qatar’s alleged funding of terrorist acts across the globe, while on Saturday, UAE had reopened all of its entry points with Qatar and Saudi Airlines alongside Qatar Airways had announced that they would soon resume flights between Riyadh and Doha.
Mideast stocks end higher after global-scale rally
In tandem, while Dubai’s main index had outperformed other regional peers on Sunday, main index of Dubai surged as much as 2 per cent, largely led by a 3.2 per cent rise in the shares’ prices of both Dubai Islamic Bank alongside Emaar Properties, while Abu Dhabi’s main index had also curtailed the day in an affirmative territory.
Saudi’s main index ascended 1.1 per cent with a majority of its consumer stocks reporting solid gains. Outside the Gulf, Egyptian blue-chip index advanced 2.2 per cent, extending its rally into a third consecutive day.
Elsewhere in the Gulf, equities in Kuwait, Oman and Bahrain, had winded up the day in an upbeat tenure as beforementioned.