LONDON: Most stock markets in the Gulf rose in early trade on Monday, extending gains from the previous session ahead of this week’s meeting of officials from OPEC and other top oil producers on supply adjustments.
OPEC and its allies, a group known as OPEC+, will consider keeping oil output unchanged for September when they meet next week despite calls from the United States for more supply, although a modest output increase is also likely to be discussed, Reuters reported on Thursday, citing eight sources
Crude prices, a key catalyst for the Gulf’s financial markets, have soared in 2022 to their highest since 2008, climbing above $139 a barrel in March after the United States and Europe imposed sanctions on Russia over its invasion of Ukraine.
Prices have since eased to just over $100 a barrel as soaring inflation and higher interest rates raise fears of a recession that would erode demand.
Saudi Arabia’s benchmark index gained 0.6%, with Retal Urban Development Co rising 0.7% and Al Rajhi Bank climbing 0.6%.
The kingdom’s gross domestic product rose by 11.8% in the second quarter compared with the same period in 2021, according to initial government estimates on Sunday, as the world’s top oil exporter benefited from higher energy prices.
Growth was largely driven by a 23.1% increase in oil activities, the General Authority for Statistics said, while non-oil activities expanded 5.4%.
Dubai’s main share index added 0.6%, led by a 1.5% gain in top lender Emirates NBD and a 0.4% increase in blue-chip developer Emaar Properties.
In Abu Dhabi equities climbed 0.4%, helped by a 0.3% rise in the United Arab Emirates’ biggest lender First Abu Dhabi Bank.
The Qatari index advanced 1%, buoyed by a 2.2% leap in Qatar Islamic Bank and a 1.9% gain in Qatar National Bank, the Gulf’s largest lender.