MARKET REPORT Rebound in the Gulf after early setback

Major Arabian Gulf markets staged a recovery on Thursday after opening on a weak note on global market woes, with renewed interest in financial stocks helping overcome volatility in global markets.

Saudi Arabia’s index was up 0.5 per cent to 7,830 points, with Al Rajhi Bank gaining 0.8 per cent and Saudi Basic Industries up 1 per cent.

Tabuk Cement rose 2.2 per cent after saying it had signed a preliminary agreement to export 600,000 tonnes of clinkers and 150,000 tonnes of cement to Yemen.

Gulf Union Cooperative Insurance added 2.5 per cent to 13,265 points after publishing an offer document for a proposed acquisition of Al Ahlia Insurance Co in a share-swap deal. Al Ahlia jumped 7.7 per cent in active trade.

The Abu Dhabi ADX index was up 0.7 per cent to 4,898 points, with First Abu Dhabi Bank gaining 0.7 per cent and Dana Gas adding 3.3 per cent. Dana Gas said earlier this week that it had received $324 million of receivables in 2018, including $199m from Egypt.

The Dubai index rose 0.2 per cent to 2,526 points in late buying. Dubai Investments added 3.2 per cent and Damac Properties gained 2 per cent.

The Egyptian blue-chip index rose 0.5 per cent to 13,265 points, gaining for a third straight session, aided by its bank shares. Commercial International Bank advanced 1.1 percent and tobacco maker Eastern Company climbed 2.1 per cent. .

Oil increased in New York as worries over signs of slower economic growth in China were countered by Opec’s production cutbacks.

West Texas Intermediate for February delivery was 41 cents higher at $46.95 a barrel as of 1:11pm London time, having earlier dropped as low as $45.35 on the New York Mercantile Exchange. Total volume traded was about 29 per cent above the 100-day average.

Brent for March settlement was 78 cents higher at $55.69 per barrel on ICE Futures Europe exchange in London. The global benchmark crude climbed 2.1 per cent to $54.91 on Wednesday.

Saudi Arabia throttled back production a month before wider supply curbs pledged by Opec and its allies started this month. The kingdom’s cutbacks reduced Opec’s overall output by 530,000 barrels per day in December, its sharpest pullback since January 2017.