Saudi, Dubai stocks rise; oil prices flat

30/05/2017 01:56 AST

Gulf stock markets were mixed on Monday with Saudi Arabia and Dubai rebounding modestly from losses which they suffered on Sunday due to disappointment that last week›s meeting of global oil producers did not take stronger action to boost prices.

The Saudi stock benchmark Tadawul All Share Index climbed 0.6 percent with real estate investment trusts accounting for three of the top four percentage gainers after Saudi Fransi Capital said an offer of units in its new Taleem REIT this month was 890 percent subscribed, indicating strong demand for REITs.

Petrochemical shares were strong with Saudi Kayan gaining 1.3 percent, although small producer Nama Chemicals, which had plunged its 10 percent daily limit on Sunday, slid a further 1.6 percent.

Elsewhere, the Dubai index added 0.7 percent. The four most active stocks were worth less than 1 dirham each, with Union Properties the most heavily traded stock, gaining 2.4 percent.

Kuwait index rose 0.2 percent to 6,663 points. Bahrain index edged up 0.1 percent to 1,319 points.

Oil prices were flat on Monday but remained on an unstable footing as increases in US drilling activity undercut an OPEC-led push to tighten supply.

Trading was subdued due to public holidays in China, the United States and Britain, but the market remains unsettled because of uncertainty over whether the impact of OPEC›s latest action to curb oversupply would be enough to support prices.

Brent crude futures were trading 5 cents higher at $52.20 per barrel at 1311 GMT. The contract ended the previous week down nearly 3 percent. US West Texas Intermediate (WTI) crude futures were 4 cents higher at $49.84 per barrel.

The Organization of the Petroleum Exporting Countries and some non-OPEC producers pledged last week to extend production cuts of around 1.8 million barrels per day w(bpd) until March 2018. An initial agreement, in place since January, would have expired in June this year.

Qatar›s index edged down 0.1 percent but Qatar First Bank, the most heavily traded stock, climbed 5.8 percent. In the last several days it has rebounded from record lows.

In Kuwait, logistics giant Agility climbed 2.3 percent to 0.706 dinar, after a 6.2 percent surge on Sunday.

Abu Dhabi index edged down 0.1 percent to 4,493 points. Qatar index edged down 0.1 percent to 10,112 points. Oman index edged down 0.03 percent to 5,385 points.

Saudi Gazette