Mideast Stocks: Major Gulf bourses gain in early trade

Mideast Stocks: Major Gulf bourses gain in early trade

Major stock markets in the Gulf rose on Monday, tracking oil prices and Asian shares higher, with the Dubai index on course to gain for a third session.

Saudi Arabia's benchmark index added 0.4%, led by a 0.6% rise in Al Rajhi Bank and a 0.7% increase in oil behemoth Saudi Aramco.

Crude prices, a key catalyst for the Gulf's financial markets, extended gains propped up by a weaker dollar and tight supplies that offset concerns about recession and the prospect of widespread COVID-19 lockdowns in China again reducing fuel demand.

Last week, Brent crude and U.S. West Texas Intermediate (WTI) crude posted their biggest weekly drops in about a month on fears of a recession that will hit oil demand. Mass COVID testing exercises continued in parts of China this week, raising oil demand concerns at the world's second-largest oil consumer.

Dubai's main share index added 0.5%, with blue-chip developer Emaar Properties advancing 1.7% and diversified investment group Dubai Investments leaping 2.3%.

However, emirati supermarket chain Union Coop plunged more than 11% in its debut trade.

Union Coop, which operates 23 branches, is the largest consumer cooperative in the UAE, according to its website.

In Abu Dhabi, the index edged 0.1% higher, helped by a 0.3% increase in conglomerate International Holding .

Separately, the United Arab Emirates on Sunday launched a 3 billion UAE dirham ($816.84 million) fund to support its space programme and a new initiative to develop radar satellites, the Gulf country's president Sheikh Mohammed bin Zayed al-Nahyan said on Twitter.

The Qatari index rose 0.6%, driven by a 10% jump in Qatar Navigation (Milaha) after the shipping conglomerate won engineering, procurement, construction and installation (EPCI) contract from QatarEnergy valued at more than 1.4 billion riyals ($384.62 million).