DUBAI (Reuters) – The main stock markets in the Gulf region closed higher today, Thursday, as the Saudi index recorded its highest level since mid-2006, while the Egyptian stock market fell due to the selling of the leading shares.
The main index of the Saudi market rose 1% to 12,079 points, the highest level in 15 years, supported by a 5.4% increase in Riyad Bank and a 1.5% rise in the National Bank of Saudi Arabia.
Farah Murad, senior market analyst in the Middle East and North Africa division at XTP, said that the high price levels in the oil markets supported the Saudi stock market.
“In addition, the market is witnessing strong support this year with the intention of the Saudi sovereign wealth fund to invest $10 billion in local stocks,” Farah added.
Yesterday, Wednesday, the Saudi Minister of Industry and Mines said that the Kingdom plans to auction up to three mining licenses in 2022, including the Kheniqiyah mines, as zinc and copper deposits are estimated to contain about 26 million tons.
In Abu Dhabi, the main index rose 0.7 percent to 8,426 points, led by an increase of 1.8 percent for First Abu Dhabi Bank, the largest bank in the Emirates.
Dubai’s index rose 0.2 percent to 3,215 points, supported by a 1.1 percent increase in Emirates NBD Bank.
Crude prices, the main catalyst for Gulf financial markets, settled near their highest levels in two months, with Brent crude trading near $85 a barrel, supported by expectations of increased demand thanks to a strong economic recovery.
However, rising US inventories and rising inflation limited the gains.
The Qatari index rose 1.3 percent to 12,218 points, with most of its shares, including Qatar Islamic Bank, which rose 2.7 percent.
Official estimates indicate that the Qatari economy grew by 2.6 percent on an annual basis in the third quarter of 2021, driven mainly by the non-oil sector.
The index in Bahrain rose 0.6 percent to 1804 points. The index rose in the Muscat market 0.2 percent to 4,267 points.
The Kuwait index scored a record high above 8,058 points, up 1.5 percent, achieving the highest rise.
Outside the Gulf region, the main index of the Egyptian Stock Exchange fell 0.4 percent to 1,2012 points, affected by a 2.2 percent drop in EFG Hermes’ shares.
The Egyptian Stock Exchange declined today, after it recorded significant increases during the past few weeks, as investors moved to secure their gains. Analyst Farah Murad said that the market may witness in general some price correction, but it will remain high.
.