Oil’s fresh rally lifts Saudi

DUBAI: A rebound in global oil prices and decisions by state-controlled companies to pay cash bonuses to employees boosted Saudi Arabia’s stock market yesterday, while other Gulf bourses were mixed in choppy trading. Brent crude fell in early trade on news of a US refinery strike and weak Chinese manufacturing data, but bounced back later in the day and traded above $54 per barrel by the time Saudi Arabia’s market closed.

The Saudi stock index rose 0.8 percent as petrochemicals firm Saudi Basic Industries, the kingdom’s largest listed company, jumped 2.4 percent; other stocks in the sector also climbed. Petrochemical prices are linked to oil and the sector was hit hard in a sell-off triggered by oil’s plunge last year.

Retailers also performed well yesterday: Fawaz Alhokair surged 8.8 percent and Jarir Marketing jumped 2.6 percent. This followed announcements MIDEAST STOCK MARKETS by large companies such as developer DAMAC shot up 6.8 percent Saudi Electricity and Saudi Telecom after it reported an 11 percent that they would pay out hundreds of rise in fourth-quarter profit yesterday, millions of dollars in bonuses to their according to Reuters calculations. workers, following last Thursday’s Abu Dhabi’s index edged down order by the new king that Saudi 0.6 percent as most blue chips pulled state employees would receive two back. Oman’s market was nearly flat, months of extra salary to mark his while Kuwait edged up 0.3 percent. accession. Qatar’s benchmark added 0.5 percent,

Part of the corporate bonuses is largely on the back of Islamic expected to be spent on consumer lender Masraf Al-Rayan, which goods, boosting the retailers’ revenues jumped 3.9 percent. The bank reported and profits. Investors were less estimate-beating fourth-quarter enthusiastic about the companies results and a dividend hike last week. which will use their resources to pay Meanwhile, shares in Qatar out the cash; shares in Saudi National Bank dropped 2.0 percent as Electricity edged up 0.6 percent, they no longer carried the 2014 dividend. while Saudi Telecom fell 0.8 percent. Egypt’s bourse edged up 0.5 percent as property developers continued to gain on hopes that Egyptians will use real estate as a hedge against the weakening pound. Talaat Moustafa Group rose 1.2 percent, Amer Group added 0.8 percent and Palm Hills Development gained 0.2 percent. — Reuters

UAE, EGYPT

Other Gulf markets had closed when oil was still in the red and their performances were mixed. Dubai’s index fell 1.1 percent; the benchmark had surged 4.5 percent in the previous session. But shares in property