Gulf Arab markets buoyed by rise in oil price

UPDATE 3: Most markets end higher, with Oman up 2%, Qatar 1.1%.
Gulf Arab markets buoyed by rise in oil price
MARKET FORCES: Abu Dhabis benchmark advanced 0.5 percent to 2,550 points in early trade. (Getty Images)
By Reuters
Mon 21 Jun 2010 10:36 AM

Most Gulf Arab markets ended higher, buoyed by global sentiment and a rise in oil prices.

Oman's index ended 2 percent higher as positive global sentiment lured buyers back into the market.

"In line with global market trend, the index climbed the most in this month after China's yuan decision, and the speculators are back in action and focusing on stocks which were earlier oversold," said Osama Ibrahim Al-Qinna, head of brokerage at Oman Arab Bank.

"The upbeat sentiment in the region - due to surge in oil prices - is pushing up the volumes to new levels. We need to see follow through to the upside in the next few days to see if this recovery is sustainable."

World stocks hit a five-week high on Monday while the euro and commodities jumped after China allowed more currency flexibility, easing tensions with the West and boosting confidence in the global economy.

Qatar's benchmark rose 1.1 percent to 7,123 points and Bahrain's measure ended 0.3 percent higher at 1,396 points.

After declining for most of the session, Kuwait's index ended 0.1 percent higher at 6,644 points

Petrochemical stocks rose and helped lift Saudi Arabia's index as the market followed the trend among regional bourses, boosted by oil price and global sentiment.

Bellwether Saudi Basic Industries Co (SABIC) rose 1.9 percent, and Saudi International Petrochemicals Co (Sipchem) rose 2.5 percent. Rabigh Refining and Petrochemical Co advanced 2.3 percent, helping petrochemical stocks extend gains from the previous session.

"The move was led by the heavy weight petrochemical sector which is rallying on the back of the recent gains in oil prices," said a note from Shuaa Capital.

"That said, we note that the current rebound in the index may extend beyond our initial target of 6500 and potentially reach the main line of resistance at 6750."

The benchmark advanced 0.6 percent to 6,454 points.  (Reuters)

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