Mideast Stocks: Abu Dhabi leads major Gulf bourses higher ahead of Borouge IPO
Major stock markets in the Gulf rose in early trade on Monday, in line with Asian shares and oil prices, with the Abu Dhabi index leading the gains ahead of Borouge's initial public offering (IPO).
In Abu Dhabi, equities were boosted by a 4.4% jump in First Abu Dhabi Bank and a 4.3% increase in Abu Dhabi Commercial Bank.
The Abu Dhabi National Oil Company (ADNOC) is selling 10% of its petrochemicals joint venture with Austria's Borealis, known as Borouge, its biggest-ever IPO.
Last week, Borouge said it set the offer price for its IPO, which shows it could raise about $2 billion in the deal, and secured seven cornerstone investors.
Among other gainers, ADNOC Drilling gained 2.9% as the company announced acquisition of two additional premium offshore jackup rigs.
Saudi Arabia's benchmark index advanced 1.6%, with Al Rajhi Bank adding 3.4%, while Jabal Omar Development climbed 4.6% after the developer recorded a decrease in accumulated losses.
Elsewhere, Saudi Home Loans jumped 3.7% after announcing an annual dividend of 0.774 riyal per share.
Oil prices, a key catalyst for the Gulf's financial markets, rose, hitting their highest in more than two months, as traders waited to see whether the European Union would reach an agreement on banning Russian oil imports.
Dubai's main share index rose 1.5%, led by blue-chip developer Emaar Properties leaping 3.4%.
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.
The Qatari index inched up 0.1%.
Qatar's gross domestic product (GDP) should grow 3.5% in 2022, Central Bank Governor Sheikh Bandar bin Mohammed bin Saoud Al-Thani told a conference on Sunday in Doha.
Fitch Ratings in April forecast Qatar's GDP would grow 3.2% in 2022, from 1.6% in 2021, reflecting increased output from the soccer World Cup that the country is hosting in November and December and the post-pandemic recovery.
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