|04 February, 2020

Mideast Stocks: Gulf stocks gain as oil prices rebound

Saudi Arabia's index rose 0.3% led by a 0.7% gain at National Commercial Bank

Major Gulf stock markets rose in early trade on Tuesday on the back of a rebound in oil prices and a string of positive corporate earnings' announcements.

Oil Prices were 1% higher after slumping the previous session, amid hopes for new production curbs by OPEC and its allies to offset any drop in future fuel demand that might be triggered by China's coronavirus outbreak. 

Sources told Reuters on Monday that the group, known as OPEC+, was considering a further cut in oil output of 500,000 barrels per day (bpd). 

Saudi Arabia's index rose 0.3% led by a 0.7% gain at National Commercial Bank.

Bank Aljazira advanced 2.3% after it reported a 162% surge in annual profit which it attributed to lower zakat charges.

Saudi Aramco edged down 0.2% to 33.9 riyals.

Abu Dhabi's index was up 0.6% buoyed by a 5.6% jump in Emirate Integrated Telecommunications. Dubai Investments rose 3.1% after it reported a higher annual profit.

The Abu Dhabi index gained 0.5% with First Abu Dhabi Bank and Abu Dhabi Commercial Bank adding 0.7% and 1.9% respectively.

Abu Dhabi National Energy Company added 14.9% to previous session's gain. Abu Dhabi Power Corporation is planning to take control of the energy firm in an asset swap deal that would create a combined utility with assets worth a total of about 200 billion dirhams ($54.45 billion)

Nasdaq-Dubai listed port operator DP World declined 2.8% as it reported a 1% growth in volume in 2019, handling 71 million twenty-foot equivalent units.

In Qatar, the index was up 0.2% as the Gulf's largest lender Qatar National Bank rose 1.5%.

Qatar Insurance and Vodafone Qatar rose 1.3% and 0.8% respectively. On Monday both the companies reported increase in their annual profits.

($1 = 3.6729 UAE dirham)

(Reporting by Maqsood Alam in Bengaluru; Editing by Kirsten Donovan) ((Maqsood.Alam@thomsonreuters.com;))

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