Gulf stock markets ended mixed on Tuesday, with the Saudi index posting a three-game losing streak as oil prices rose after the kingdom denied talks of a production boost.
Crude prices – a key catalyst for Gulf financial markets – rose after major exporter Saudi Arabia said OPEC+ was sticking to production cuts and may take further action to balance the market.
That offset the pressure from global recession worries and worries about rising COVID-19 cases in China.
Saudi Energy Minister Prince Abdulaziz bin Salman was also quoted by the state news agency SPA on Monday as denying a Wall Street Journal report that OPEC was considering increasing production.
The benchmark in Saudi Arabia rose 0.3%, helped by a 3.6% gain from Bank Saudi Fransi and a 0.9% increase from oil giant Saudi Aramco.
In Qatar, the index fell 0.2%, extending losses for a sixth consecutive session and hit by a 2% drop in Qatar Islamic Bank.
Qatari stocks continued to see steep declines while natural gas prices remained highly volatile, said Robert Woolfe, chief operating officer at Emporium Capital.
Meanwhile, QatarEnergy has signed a 27-year deal to supply China’s Sinopec with liquefied natural gas in the longest such LNG deal to date, as volatility drives buyers to seek long-term supplies. .
Since Russia’s invasion of Ukraine in February, competition for LNG has become intense, with Europe in particular needing large quantities to help replace the Russian gas pipeline that accounted for almost 40% of the continent’s imports. .
Dubai’s main stock index fell 0.3%, hit by a 0.9% fall in Sharia-compliant lender Dubai Islamic Bank.
In Abu Dhabi, shares edged down 0.1%. On Monday, the UAE’s energy minister said the Gulf state had denied engaging in talks with other OPEC+ members to change their latest deal, adding that it was valid until at the end of 2023.
Outside the Gulf, Egypt’s blue chip index resumed gains to close up 1.4%, a day after snapping six sessions of gains.
According to Woolfe, the Egyptian market saw further gains as investors continued to buy in large volumes.
“The main index remained, however, exposed to price corrections due to the sharp rise in prices since last month.”
SAUDI ARABIA rose 0.3% to 10,965 ABU DHABI fell 0.1% to 10,393 DUBAI fell 0.3% to 3,330 QATAR fell 0.2% to 11,828
(Reporting by Ateeq Shariff in Bengaluru; Editing by Devika Syamnath)
