Most Major Gulf Exchanges Track Rising Oil Prices

A trader looks at screens at the Bahrain Stock Exchange in Manama, Bahrain, February 7, 2018. REUTERS/Hamad I Mohammed

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Jan 19 (Reuters) – Most major Gulf stock markets rose in early trading on Wednesday amid high oil prices, with the Saudi index holding at its highest level since July 2006.

Crude prices, a key factor for Gulf financial markets, rose for a fourth day as a breakdown in a pipeline linking Iraq to Turkey heightened concerns over an already tight supply outlook in a context of worrying geopolitical unrest in Russia and the United Arab Emirates.

Saudi Arabia’s benchmark index (.TASI) rose 0.1%, its highest level in more than 15 years, as its biggest lender, Saudi National Bank (1180.SE), rose 0 .4%.

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Saudi Basic Industries Corporation (SABIC) (2010.SE) gained 0.4% after plans to build a petrochemical plant in the Gulf Coast city of Jubail in Eastern Province. Read more

Separately, South Korea’s LG Corp (003550.KS) plans to establish its regional headquarters in the Saudi capital Riyadh, Asharq TV reported on Tuesday. Read more

In Abu Dhabi, the index (.ADI) rose 0.3%, led by a 0.9% gain in First Abu Dhabi Bank (FAB.AD).

Dubai’s main stock index (.DFMGI) fell 0.8%, hit by a 1.7% decline in prime developer Emaar Properties (EMAR.DU) and a 0.6% drop in conforming lender at Shariah Dubai Islamic Bank (DISB.DU).

The United Arab Emirates on Tuesday evening called for a meeting of the United Nations Security Council to condemn an ​​attack on Abu Dhabi on Monday by Yemen’s Houthi movement, which threatened further attacks. Read more

By attacking the United Arab Emirates, the Houthis sought to warn the Gulf state to stay out of a battle for prized energy regions in Yemen, where the Iran-aligned group has been angered by losses suffered by the forces supported by the powerful American ally. Read more

The Qatari index (.QSI) edged up 0.1%, with petrochemicals maker Industries Qatar (IQCD.QA) rising 0.5%.

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Reporting by Ateeq Shariff in Bangalore; edited by David Evans

Our standards: The Thomson Reuters Trust Principles.


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Felix J. Dixon