Saudi stocks sustain upturn on optimism

09/09/2015 05:18 AST

Gulf markets rose in line with oil prices. The main Saudi stock index added 1.3 percent to 7,578 points and most stocks in Riyadh were positive.

Oil shipper Bahri jumped 3.6 percent as the benchmark tanker rate from the Gulf to Japan continued to rebound, rising 63 percent after hitting a six-year low on Aug.26.

Qatar was the second best performer the region, rising 1.0 percent in a broad rally after the country's finance minister said his cabinet would not scale back economic development projects or cut state subsidies for fuel and food in response to low oil and gas prices.

The comments by minister Ali Sherif Al-Emadi, who said state finances were healthy and required no adjustments, set Doha apart from other wealthy Gulf Arab oil exporting states; the other five members of the Gulf Cooperation Council have begun to curb spending or review costly consumer subsidies because of the plunge of energy prices since last year.

Qatar index added 1.0 percent to 11,430 points while Kuwait index inched up 0.1 percent to 5,717 points. Oman index climbed 0.2 percent to 5,783 points, however, Bahrain index slipped 0.08 percent to 1,293 points.

Egypt index dropped 3.4 percent to 6,924 points. Dubai's index edged up 0.5 percent to 3,575 points, supported by property-related stocks as companies in the sector announced new projects and contracts at the Cityscape conference and exhibition, an annual industry event.

Engineering and construction firm Drake and Scull jumped 2.0 percent after announcing on Tuesday it had won AED96.1 million ($26.2 million) in contracts in Abu Dhabi and Kuwait.

Conglomerate Dubai Investments climbed 0.9 percent after presenting its Mirdif Hills project, a mixed-use residential, commercial and retail development in Dubai spread across 3 million square feet; it provided no financial information, however.

Abu Dhabi's bourse added 0.6 percent to 4,414 points thanks to telecommunications firm Etisalat, which surged 3.8 percent.

Analysts say the company, which will from Sept.15 allow foreign and institutional investors to hold up to 20 percent of its shares, may become part of emerging market indexes and attract foreign fund inflows.

Saudi Gazette