Mideast Stocks: Egypt outperforms; Saudi Arabia extends losses

PHOTO

Most stock markets in the Middle East closed higher on Monday as oil prices edged up, with Egypt outperforming after the central bank reported an increase in the country's net foreign reserves.

Oil prices - a key catalyst for the Gulf's financial markets - drifted higher, snapping a six-session losing streak, with Brent crude futures up 56 cents, or 0.70%, to $80.50 a barrel at 1130 GMT. International Energy Agency (IEA) Executive Director Fatih Birol said China's recovery remained a driver for oil prices.

In Abu Dhabi, the benchmark stock index settled 0.7% higher, gaining for a sixth session in a row, lifted by a 5.6% rise in American Restaurants International.

The Qatari Stock index rose 0.5% after Dukhan Bank announced a listing of its shares on the Qatar Stock Exchange. Dukhan Bank will offer more than 5.234 billion shares at 4.35 riyal per share, with a listing planned on Feb. 21.

The Qatari stock market recorded a positive performance thanks to the solid local fundamentals, with economic activity expected to continue improving this year, said Fadi Reyad, chief market analyst at CAPEX.com.

"However, the declining natural gas prices could remain a weight for local stocks," Reyad added. Dubai's benchmark index rose 0.5%, rallying for a fourth straight session as toll operator Salik Company added 2.3% and sharia-compliant lender Dubai Islamic Bank increased 0.7%.

Saudi Arabia's benchmark index fell for a sixth session, edging down 0.03%, weighed down by pressure on heavyweight financial and energy sector stocks. Outside the Gulf, Egypt's blue-chip index advanced 2%, recovering from last week's 3.2% loss, as the index was boosted by a 3.1% gain in Commercial International Bank Egypt.

Egypt's net foreign reserves rose to $34.224 billion in January from $34.003 billion in December, the central bank reported on Sunday.