Monday 6 June 2022

Oil price rise boosts #Saudi index; #AbuDhabi extends losses | Reuters

Oil price rise boosts Saudi index; Abu Dhabi extends losses | Reuters


Saudi Arabian shares outperformed other Gulf markets to close higher on Monday after the kingdom hiked prices for its crude sales in July, while the Abu Dhabi index fell for a fourth straight session.

The kingdom raised the official selling price for its flagship Arab light crude to Asia to a $6.50 premium versus the average of the Oman and Dubai benchmarks, from a $4.40 premium in June. The move lifted global prices of crude oil. read more

Saudi Arabia's benchmark index (.TASI) advanced 1.3%, boosted by a 3.4% jump in petrochemical maker Sabic (2010.SE) and a 1% hike in Al Rajhi Bank (1120.SE) as the two sectors were set to gain the most from surging oil prices.

Barclays raised its Brent crude price forecasts by $11 per barrel for 2022 and $23 for 2023, citing a larger and sustained disruption in Russian supply following sanctions by the European Union. read more

Insurer Bupa Arabia (8210.SE) gained 5.1% after the company announced an annual dividend of 4.50 riyals a share ($1.20), an increase of about 32% compared with a year earlier.

Separately, Saudi's sovereign wealth fund - the Public Investment Fund (PIF) - has been shortlisted to buy a stake in the Middle East, North Africa and central Asia Starbucks franchise held by Alshaya Group, two sources said. read more

The Qatari index (.QSI) gained 1.3%, led by a 2.7% increase in Qatar Islamic Bank (QISB.QA) and a 2.2% leap in Sharia lender Masraf Al Rayan (MARK.QA).

Dubai's main share index (.DFMGI) edged up 0.1%, helped by a 0.8% rise in Dubai Islamic Bank (DISB.DU) and a 0.8% increase in Emirates Integrated Telecommunications (DU.DU).

But the Abu Dhabi index (.FTFADGI) closed 0.7% lower, hit by a 2% slump in the country's largest lender First Abu Dhabi Bank (FAB.AD) and a 0.2% drop in conglomerate International Holding Company (IHC.AD).

Outside the Gulf, Egypt's blue-chip index (.EGX30) closed flat.

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