Most Gulf markets gain on rising oil prices

When oil prices go up, most Gulf markets do better.

According to Reuters: The Saudi index increased for a fourth straight session on Sunday as other Gulf stock markets followed suit, reacting to Friday’s increase in oil prices.

With U.S. sanctions on some Russian oil shippers providing support, oil prices increased more than 4% on Friday, rebounding from a 4-month low. This is significant for the Gulf’s financial market.

The benchmark.TASI index in Saudi Arabia rose 0.5%, with gains seen in oil major Saudi Aramco (2222.SE) (+0.3%) and the country’s largest lender Saudi National Bank (1180.SE) (+1.5%).

In Qatar, the index (.QSI) finished 0.2% higher, supported by a 1% jump in the Gulf’s biggest lender Qatar National Bank (QNBK.QA).

U.S. economic data softened last week, fueling rate-cut predictions that drove Treasury rates lower and boosted stock markets.

Since most regional currencies are tied to the dollar, monetary policy in the six-member Gulf Cooperation Council (GCC) is typically influenced by choices made by the U.S. Federal Reserve.

Egypt’s benchmark stock index (.EGX30) rose 2.1%, led by Commercial International Bank’s (CIB) (COMI.CA) 3.8% increase.

CIB, the largest private bank in Egypt, announced on Thursday that it has received a $150 million loan from the European Bank for Reconstruction and Development (EBRD).

Due to the economic problems faced by the Israel-Hamas war, IMF Managing Director Kristalina Georgieva told Reuters on Friday that the Fund was “seriously considering” a possible augmentation of Egypt’s $3 billion loan programme.



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