Saudi Arabia’s main equities index led advances in the Gulf on Sunday, catching up with gains in oil and emerging-market stocks last week.
The Tadawul gauge also got a boost by earnings from Bank AlBilad and United International Transport, which were higher than estimates. Saudi Arabian Mining Co. extended gains after the company said it plans to focus on deleveraging this year.
In January, non-oil private sector activity in Saudi Arabia soared during January, according to IHS Markit’s purchasing managers index.
Last week, oil futures rallied to a one-year high as Chinese consumption surpassed pre-virus levels, the vaccine rollout restored confidence and the OPEC cartel kept a tight leash on supply. Also, stocks in developing countries posted their best week in three months as US President Joe Biden’s push for a $1.9 trillion pandemic-relief package revived the reflation trade.
As higher oil prices support government revenue and stimulus, stocks in the UAE with “higher yields and lower valuations” look “poised for a breakout,” Emirates NBD analysts led by Chief Investment Officer Maurice Gravier wrote in a note.
Middle Eastern markets
- Saudi Arabia’s Tadawul All Share Index rose 0.8 percent
- Bank Albilad and United International Transport gained 5.6% and 4%, respectively
- Other stocks climbing: Al Rajhi Bank +1.4 percent, Banque Saudi Fransi +2.1 percent, Saudi Aramco +0.4 percent
- Dubai’s DFM General Index fell 0.2 percent, down 2.1percent in the past three sessions
- Dubai Investments -3.2, percent, Damac Properties -2.2 percent, Dubai Islamic Bank -0.2 percent, Emaar Malls -0.6 percent
- Qatar’s QE Index, Kuwait’s Premier Markets Index and Bahrain’s benchmark climb between 0.1 and 0.6 percent
- Gauges in Oman and Bahrain drop as much as 0.2 percent
- In Egypt, Juhayna Food Industries slumps as much as 17 percent after the company confirmed its CEO and deputy board chairman has been detained by authorities
- The EGX 30 was little changed
Highlights
- The MSCI Emerging Markets Index rose 5 percent last week, the biggest weekly increase since November 6.
- Brent crude gained 6.2 percent to $59.34 per barrel last week, climbing to the highest level in over one year.
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