Oil boosts Gulf stocks

dubai — Gulf stock markets closed in positive territory on Sunday, boosted by a surge in oil prices, an increase in retail investors and encouraging news on Bahrain’s financial prospects.

Oil prices surged last week on concerns that US sanctions against Iran would remove a substantial volume of crude oil from world markets at a time of rising global demand.

Bahrain’s bonds and currency rebounded from multi-year lows late last week after Saudi Arabia, Kuwait and the UAE said in a joint statement that they would announce soon measures to support its economy. The Bahraini index closed 0.2 per cent up on Sunday. It climbed 0.9 per cent since last week’s announcement from the country’s regional allies.

Stock exchanges were up across the region, with the Dubai index and the Abu Dhabi index up 1.5 per cent and 1.3 per cent respectively. In Abu Dhabi, Eshraq Properties jumped 6.7 per cent. The company said last week it was seeking to deploy “excess liquidity” in investments across the UAE, after dropping merger plans with Abu Dhabi developer Reem Investments. It also said it has no exposure to Dubai’s private equity Abraaj Group.

In Dubai, most stocks were up but trading volume was concentrated on Drake & Scull, which shed 0.7 percent after some gains earlier on Sunday.

The Saudi index gained 0.3 per cent, with petrochemical companies rising on the back of higher oil prices, and with real estate investment trust funds posting large gains of up to 10 pe rcent.

The best performer was Al Jazira Mawten Reit, up 9.9 per cent, followed by Taleem Reit Fund, which jumped nine per cent.

Lifted by surging crude oil prices, petchem companies such as Saudi Kayan Petrochemical and Sahara Petrochemical gained 1.3 per cent and 1.9 per cent, respectively.

Kuwait added 0.2 per cent to 4,915 points. Oman, however, dropped 4.9 per cent.

The Egyptian exchange was closed because of a national holiday. —