Most Gulf markets gain on rising oil prices: In reaction to Friday’s spike in oil prices, the majority of Gulf stock markets closed higher on Sunday; however, the Saudi index defied the trend and closed negative. Due to growing U.S. diesel futures and concerns about limited oil supplies after Saudi Arabia and Russia’s extension of production limits earlier in the week, oil prices increased by about 1% on Friday to a nine-month high.
The index (.QSI) in Qatar increased by 1.1%, with the majority of the index’s components seeing gains, including Industries Qatar (IQCD.QA), a producer of petrochemicals, which increased by 3.5%.
The benchmark index for Saudi Arabia (.TASI) fell 0.6%, with losses of 0.9% at Al Rajhi Bank (1120. SE) and 1.7% at Alinma Bank (1150. SE).
According to an IMF official, the organization anticipates Saudi Arabia’s GDP growth to decelerate from the current 1.9% estimate due to the most recent extension of the country’s oil output curbs, even if non-oil growth is predicted to continue growing well.
In its most recent Article IV report, the IMF predicted that the world’s largest oil exporter will shift from a 2.5% budget surplus in 2022 to a 1.2% deficit of GDP in 2023. Outside the Gulf, Easter Company (EAST.CA), the tobacco monopoly, saw a 4.7% increase, which helped Egypt’s blue-chip index (.EGX30) rise 1% and reach an all-time high. Egypt’s central bank said on Thursday that the country’s net foreign reserves increased to $34.928 billion in August from $34.879 billion in July.