Rising oil prices lift region’s indexes

Saudi Arabia’s stock market rose yesterday on the strength of its banks as rising oil prices lifted most major Arabian Gulf markets, while Egypt was partly dragged down by its biggest lender Commercial International Bank.

Brent oil hit a 2019 high above $72 per barrel, propelled by steady economic growth in China and a fall in US crude stocks.

The Saudi index rose 1.1 per cent to 9,238 points for its biggest one-day gain in two-anda-half months, with 11 of its 12 banks advancing. Al Rajhi Bank added 2.3 per cent and the kingdom’s largest lender National Commercial Bank gained 2.2 per cent.

Riyad Reit gained 0.4 per cent after it acquired a 40 per cent stake in the leasehold interest of an office building in the United States. The investment is expected to generate a net yield of more than 8 per cent for its shareholders, the company said.

Egypt’s blue-chip index slipped 0.7 per cent to 14,864 points, weighed down by a 1.1 per cent drop in Commercial International Bank and a 2.8 per cent fall in El Sewedy Electric. Following recent political upheaval in Sudan, El Sewedy said its business exposure to Sudan amounted to around 1.1 per cent of its profit as of last year.

In Dubai, the index was up 0.8 per cent to 2,813 points as Dubai Islamic Bank gained 1.2 per cent. All real estate shares rose with blue-chip developer Emaar Properties gaining 0.8 per cent and Damac Properties climbing 3.1 per cent.

Dubai’s Purchasing Managers’ Index for March came in at 57.6, a 10-month high reading, Al Mal Capital said. The improvement in non-oil business activity was led by the travel and tourism industry and wholesale and retail. Growth in the UAE’s non-oil sector picked up in March after slowing to a 28-month low last month, a survey showed.

The Abu Dhabi index was up 0.5 per cent at 5,237 points with Dana Gas adding 2.9 per cent and First Abu Dhabi Bank increasing 0.6 per cent. Last week, the bank obtained regulatory approval to increase its foreign ownership limit to 40 per cent from a previous limit of 25 per cent.

In Bahrain the index edged up 0.1 per cent at 1,445 points while in Oman the index fell 0.2 per cent to 3,977 points. The Kuwait index was down 0.1 per cent to 6,175 points.