Brent provides a lift for Gulf bourses

Stock markets in the Arabian Gulf gained yesterday, supported by the rise in Brent oil to a three-year high above US$70 per barrel, as Qatar continued a strong rally and the top Saudi Arabian petrochemical producer climbed after acquisition news.

Qatar’s main index rose 1.1 per cent, gaining for a fourth straight day.

Corporate earnings have suggested that damage to the economy from an embargo imposed by other Arab states has been less serious than feared, and the index is now within 5 per cent of its pre-embargo level last June.

Mesaieed Petrochemical surged 5.5 per cent and drilling rig provider Gulf International Services gained 3.2 per cent in active trade. Both firms’ revenues could benefit from higher oil prices.

But property firm Ezdan Holding tumbled 6.8 per cent after reporting a drop in annual net profit to 1.69 billion riyals from 1.81bn riyals, and deciding not to pay a 2017 dividend. In the first nine months of the year, profit had risen 9 per cent.

The Saudi index was 0.6 per cent higher, with Saudi Basic Industries Corporation adding 2 per cent to hit its highest level since early 2015.

It agreed to acquire a 24.99 per cent stake in Swiss specialty chemicals maker Clariant, becoming the Swiss company’s largest shareholder.

Sabic did not say how much it was paying, but the 24.99 per cent stake was worth $2.4bn based on market capitalisation.

However, Saudi Fertilizers fell 2.5 per cent after reporting fourth-quarter net profit dropped to 62.5 million riyals from 268.4m riyals a year ago, mainly because of a scheduled shutdown of facilities but partly because of a rise in fixed and variable costs. In the first nine months, net profit rose 6 per cent.

Dubai’s index edged up 0.2 per cent with most stocks trading narrowly, although real estate firm Deyaar, the most heavily traded stock, climbed 1.6 per cent.

Education and healthcare investor Amanat added 3.5 per cent after saying it had bought an additional 40 million shares in schools operator Taaleem Holdings for Dh52m, making it the biggest shareholder with 21.7 per cent.

Egypt’s market was closed for a public holiday.