Tuesday, 31 May 2022

#AbuDhabi leads gains in Gulf markets; #Qatar falls | Reuters

Abu Dhabi leads gains in Gulf markets; Qatar falls | Reuters

Most stock markets in the Gulf rose in early trade on Tuesday, in line with oil prices, with the Abu Dhabi index nearing its peak ahead of Borouge's initial public offering (IPO).

In Abu Dhabi, the index (.FTFADGI) advanced 1.5%, nearing a high hit in April, with the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD) jumping 3.9%.

Abu Dhabi-based petrochemicals company Borouge raised more than $2 billion on Tuesday after demand for its IPO topped $83.4 billion.

The company is owned by Abu Dhabi National Oil Company (ADNOC) and Austria's Borealis. Following the IPO, ADNOC will continue to hold a 54% majority stake and Borealis will own 36%. read more

Among other gainers, Agthia Group (AGTHIA.AD) gained 1.9% after approving investment for construction of a manufacturing facility in Jeddah worth 90 million dirhams ($24.50 million).

Saudi Arabia's benchmark index (.TASI) added 0.5%, with oil-giant Saudi Aramco (2222.SE) rising 1.1%.

Crude prices, a key catalyst for the Gulf's financial markets, extended gains after the EU agreed to slash oil imports from Russia, fuelling worries of a tighter market already strained for supply amid rising demand ahead of peak U.S. and European summer driving season.

Dubai's main share index (.DFMGI) edged 0.1% higher, supported by a 0.5% rise in blue-chip developer Emaar Properties (EMAR.DU).

Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity. read more

Elsewhere, Aramex (ARMX.DU) leapt 4.8% after the logistics firm increased its foreign ownership limit to 100% from 49% earlier.

Bucking the trend, the Qatari index (.QSI) dropped 0.6%, hit by a 1.6% fall in Qatar Islamic Bank (QISB.QA).

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