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MIDEAST STOCKS-Gulf markets track oil prices higher, Dubai outperforms

MIDEAST STOCKS-Gulf markets track oil prices higher, Dubai outperforms

Reuters · 09/13/2022 09:41
MIDEAST STOCKS-Gulf markets track oil prices higher, Dubai outperforms

By Shakeel Ahmad

- Major Gulf markets extended gains on Tuesday as supply worries pushed up oil prices, while an IPO subscription boosted market sentiment in Dubai.

Dubai shares .DFMGI gained 1.6% in their biggest intraday surge in three months. Banking and real estate shares led the rally putting the gauge firmly on track for weekly gains after two straight weeks in the red.

The sentiment in the market picked up as Dubai road-toll operator Salik priced its initial public offering at 2 dirhams a share, valuing the issue at around 3 billion dirhams ($817 million).

Salik is the third entity to seek a listing this year in an IPO aimed at attracting investor interest in the domestic stock exchange.

"The start of Salik's IPO subscription boosted sentiment," said Daniel Takieddine, CEO MENA BDSwiss. "The market could see more increases as investors flock."

The Abu Dhabi index .FTFADGI added 0.6% and rose for a fifth day running, its longest winning streak in a month. The surge comes as oil prices were headed for a fourth day of gains.

The Abu Dhabi stock market extended its advance, thanks to improving sentiment locally and rebounding oil prices. The market could be heading toward its latest peak if conditions remain positive, added Takieddine.

Financial shares drove Saudi Arabia's benchmark index .TASI 0.5% higher with Al Rajhi Bank 1120.SE and Banque Saudi Fransi 1050.SE picking up 2% and 4.2%, respectively.

Banking shares also pushed the Qatar equities .QSI up 0.9% with almost all lenders closing higher.

The market remained upbeat as gas prices continued to rebound. Demand for energy could increase with winter approaching while uncertainty around supplies persists.

Egyptian blue chips .EGX30, however, ended 0.4% lower. Investors appeared to have booked profit after an extended period of gains.


.TASI rose 0..5% to 12,084


.FTFADGI rose 0.6% to 9,986


.DFMGI added 1.6% to 3,458


.QSI gained 0.9% to 13,315


.EGX30 lost 0.4% to 10,397


.BAX gained 0.5% to 1,939


.MSX30 fell 0.3% to 4,498


.BKP added 0.8% to 8,489

($1 = 3.6729 UAE dirham)

(Reporting by Shakeel Ahmad in Bengaluru;
Editing by Vinay Dwivedi)