Major Gulf stocks little changed a day after Gulf row eases | Reuters

Major Gulf stocks little changed a day after Gulf row eases | Reuters

Major Gulf stock markets where little changed early on Wednesday, a day after a breakthrough in the Gulf’s diplomatic rift, as a negative outlook for the Gulf Cooperation Council(GCC) sovereigns appeared to eclipse the positive sentiment.

Moody’s sees a negative outlook for the GCC sovereigns in 2021, driven by lower oil revenues and reduced fiscal strength.

Oil prices are unlikely to mount much of a recovery in 2021 as a new coronavirus variant and related travel restrictions threaten already weakened fuel demand, A Reuters poll showed last week.

According to the poll, Brent crude prices would average $50.67 per barrel this year.

Saudi Arabia and Egypt, the United Arab Emirates and Bahrain agreed to restore full ties with Doha after severing them more than three years ago, over what they called its support for Islamist militants. Doha rejected the accusation.

Qatar’s index was up 0.2% a day after it saw its biggest gain in nearly a month following the easing in the country’s rift with Saudi Arabia.

Industries Qatar and telecoms company Ooredoo supported the index, rising 0.8% and 1.9%, respectively.

The sharia-compliant Islamic lender Masraf Al Rayan gained as much as 0.3% after saying its board would meet on Thursday to discuss a merger with Al Khaliji Bank.

Saudi Arabia’s benchmark index was trading 0.1% up, with Saudi Basic Industries leading the gains, rising 1%.

The Dubai index was up 0.2%. Damac Properties rose 3.6%, while Dubai Financial Market added 3.8%.

Emaar Properties gained 0.3% in its fourth straight rise. The developer said it had sold its stake in ASV Group Limited, which owns Address Sky View hotel, for 750 million dirhams ($204.2million).

Abu Dhabi’s index was down 0.5% as First Abu Dhabi Bank fell 0.8% and telecoms major Etisalat lost 0.5%.