Gulf financial markets react to outcomes of GCC’s AlUla Summit

Published 06 Jan,2021 via Asharq Alawsat (English Edition) - The outcomes of the 41st annual summit of the Gulf Cooperation Council (GCC), which was held in Saudi Arabia’s historical AlUla city, have reflected positively on Gulf markets.

Affirming the importance of solidarity and stability in the Gulf, Arab and Islamic countries, Gulf leaders and participating delegations at the summit signed an agreement to open a new page for intra-Gulf relations.

The Qatari stock index closed 1.4% higher on Tuesday, leading other Gulf markets, with analysts saying that the boost stems from the deal which ended a more than three-year row between Doha and some Gulf states.

Saudi Arabia had reopened air, land and sea borders with Qatar ahead of holding the GCC summit, achieving a milestone towards resolving the Gulf dispute.

The Qatar National Bank was the top gainer on the Qatari benchmark, adding 2.4%, while Qatar Islamic Bank tacked on 1.8%.

Saudi shares finished 0.2% higher, buoyed by a nearly 1% gain in Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals firm.

Lenders Al-Rajhi and National Commercial Bank gained 0.3% and 0.7%, respectively.

Oil prices rose by around $1 as tensions simmered following Iran’s seizure of a South Korean vessel and as the OPEC+ group studied a possible production cut in February.

Elsewhere, the Dubai benchmark gained for a third successive session, putting on 1.2%.

The Dubai gains were led by blue-chip developer Emaar Properties and real estate firm Dubai Investments, which advanced 2.9% and 3.9%, respectively.

In Abu Dhabi, the benchmark strengthened 0.6% with telecoms major Etisalat adding 1.3%.

Activity in the United Arab Emirates’ non-oil private sector grew in December as its Purchasing Managers’ Index, which covers manufacturing and services, rose to 51.2 in December from 49.5 in November, a survey showed.

Bucking the trend, Bahrain’s main index slumped 1.8%, dragged mainly by a 5.5% decline in Bahrain Commercial Facilities Company.

Outside the Gulf, Egypt’s benchmark firmed 0.2%. El Sewedy Electric Co tacked on more than 4%, while Ezz Steel Co put on 7.4%.

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