Saudi jumps 1% on higher crude oil prices as most Gulf bourses drool

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Saudi jumps 1% on higher crude oil prices as most Gulf bourses drool

On Sunday, a bundle of Gulf bourses had rounded off the session in a downbeat complexion with financials catalysing a hefty header for Dubai’s main Index, though a higher crude oil futures’ prices, which had winded down last week at their highest levels in more than a year, hoisted up Saudi’s main Index, extending its recent leg of gains into a seventh straight session in a row.

In point of fact, in the day’s steep losses in a slew of Gulf bourses were mostly meaded out of a sharp downturn in defensive bets such as real estate, while financials and banks were facing off a similar outcome amid a growing rancour over a multi-year low benchmark interest rate.

Besides, a sharp decline in borrowings for business equipment across the globe alongside a dialectical depreciation in commercial investments amid a dour business landscape, had added to further faltering of financials, suggested analysts.

Nonetheless, Saudi Arabia’s main index has been the lone ranger to eke out a gain among all of the Gulf bourses, as crude oil contracts’ prices, a key reagent to business outlook of a number of oil-dependant Gulf countries, had hit their highest levels in more than a year on Friday with Brent crude settling above $60 per barrel for the first time since late-January 2020.

Saudi gains on higher oil prices, most Gulf bourses end lower

Citing statistics, in the day’s Gulf market closing bell, Saudi’s main index ascended 1 per cent following a 4.2 per cent rise in the shares’ prices of Saudi Arabian Mining Company.

Dubai’s benchmark index dipped 0.4 per cent, mostly dragged down by a 5 per cent drop in the shares’ prices of Mashreq Bank, while Emirates NBD Bank slipped 0.4 per cent and DAMAC Properties declined 1.6 per cent after it had reported a steeper-than-anticipated loss in a pandemic-battered 2020.

However, Abu Dhabi winded up the day almost flatlined. Outside the Gulf, Egypt’s blue-chip index shed 0.3 per cent with the country’s largest lender, Commercial International Bank Egypt, ebbing off as much as 0.6 per cent.

Elsewhere in the Gulf, the Qatari bourse edged 0.1 per cent lower, weighed down by a fall of 0.7 per cent in the shares’ prices of Qatar Islamic Bank.