The main gauge of shares in Riyadh climbed while those in Kuwait and Abu Dhabi fell after leaders of Russia and the kingdom discussed the OPEC + deal over the weekend and indicated cooperation additional to support oil prices.
The Tadawul All Share index climbed to 0.4% on Sunday in Riyadh, extending a 1.7% increase from last week. The gauges of Dubai, Bahrain, Oman and Tel Aviv also rose, while those of Abu Dhabi, Kuwait and Doha fell 0.4%.
Russian President Vladimir Putin and Saudi Arabia’s Crown Prince Mohammed Bin Salman spoke in what the Kremlin on Saturday said was the continuation of an October 13 conversation. The latest call came two days before several OPEC + ministers discussed the implementation of the production cuts at a meeting of the so-called Joint Ministerial Monitoring Committee.
This week’s intensive oil diplomacy comes as coronavirus cases increase in Europe and the Americas, weighing on the outlook for demand in the coming months.
Demand and supply risks are of concern, said Hootan Yazhari, managing director of equity research at BofA Securities. “Certainly what we are seeing is the decline in demand for jet fuel,” he said in an interview with Bloomberg TV on Sunday. Still, “we’re concerned about demand, especially given the re-emergence of second wave across Europe.”
MIDDLE EAST MARKETS:
- Tadawul All Share index extends October gains to 3.5%
- Kuwait’s Premier Market index drops 0.4%, the highest in the Gulf
- Qatar’s QE index retreats 0.2%, heading for third consecutive session of decline
- In Tel Aviv, TA-35 climbs 0.5%
- Delek Group jumps 6.8% after announcing it will sell 70% of Delek Israel to Lahav LR and partner for ILS525m
- LILY: Delek to sell unit stake to Lahav after reaching deal with Arbel
- Israel eased coronavirus restrictions across much of the country on Sunday as new infections continued to decline, although localities with the highest morbidity figures are still under restrictions
– With the help of Vivian Nereim and Manus Cranny