Gulf stock markets closed higher on Tuesday, aligning with the rise in oil prices and gains in Asian stocks, which were bolstered by widespread stimulus measures in China. However, geopolitical tensions in the Middle East limited the overall gains.
Oil prices, a key driver for Gulf financial markets, surged more than 2% amid China’s monetary stimulus actions and concerns that tensions in the Middle East could disrupt supply from the region.
Additionally, a new hurricane threatens oil supplies in the United States, the world’s largest crude producer.
Pan Gongsheng, the Governor of the People’s Bank of China, announced plans to lower borrowing costs, inject more funding into the economy, and ease the burden of mortgage payments. He also mentioned that China will introduce new monetary policy tools for the first time to help stabilize capital markets.
Stock Market Movements
- Saudi Arabia: The Saudi index rose by 1.1%, driven by a 0.5% increase in Al-Tayseer Aluminum Products and a 6.6% gain in ACWA Power. Saudi Aramco, the oil giant, saw its shares climb 0.3%. Sources and a term sheet reviewed by Reuters revealed that Aramco plans to raise up to $3 billion through a dollar-denominated international sukuk offering with five- and ten-year maturities.
- Dubai: The Dubai index increased by 0.6%, with Salik, a toll services company, rising by 3.3%.
- Abu Dhabi: The index in Abu Dhabi edged up by 0.1%.
- Qatar: The Qatari index gained 0.5%, supported by a 1.7% increase in Qatar Islamic Bank.
Outside the Gulf, Egypt’s main stock index declined by 0.5%, led by a 0.6% drop in shares of Commercial International Bank (CIB).
