Tuesday, 21 June 2022

Most Gulf bourses rebound but investors cautious on growth fears | Reuters

Most Gulf bourses rebound but investors cautious on growth fears | Reuters


Stock markets in the Gulf ended higher on Tuesday, pausing for breath after a steep sell-off, but major central banks' rate hike plans and global recession risks kept investors cautious.

Saudi Arabia's benchmark index (.TASI) advanced 2.6%, its biggest intraday gain in more than a year, buoyed by a 3.4% jump in Al Rajhi Bank (1120.SE) and a 1.6% increase in oil giant Saudi Aramco (2222.SE).

The kingdom's April crude exports rose to a two-year peak of 7.382 million barrels per day (bpd) in April, data from the Joint Organizations Data Initiative (JODI) showed on Monday.

Dubai's main share index (.DFMGI) climbed 1.7%, after three sessions of losses, with sharia-compliant lender Dubai Islamic Bank (DISB.DU) closing 2.3% higher.

Investors moved to buy the dip, creating a rebound after a month of price corrections, said Fadi Reyad, market analyst at CAPEX.com.

"Markets could see a small period of calm but they remain exposed to the uncertainties around inflation and economic growth."

In Abu Dhabi, stocks (.FTFADGI) finished up 1.2%, led by a 1.2% rise in the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD).

Oil prices, a key influence on the Gulf's financial markets, rose almost $2 on high summer fuel demand, while supplies remain tight because of sanctions on Russian oil after its invasion of Ukraine.

The Qatari index (.QSI) edged up 0.1%, snapping a four-day losing streak, helped by a 1% gain in petrochemical maker Industries Qatar (IQCD.QA).

According to Reyad, the positive performance could be short-lived as natural gas prices continue to decline.

Outside the Gulf, Egypt's blue-chip index (.EGX30) finished 0.2% higher, with top lender Commercial International Bank (COMI.CA) putting on 0.9%.

Egypt and Saudi Arabia have signed 14 agreements valued at $7.7 billion during a visit to Cairo by Saudi Arabia's de facto ruler Crown Prince Mohammed bin Salman, Egypt's General Authority for Investment and Free Zones said in a statement on Tuesday. read more

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