Major Gulf bourses in mixed terrain

Major stock markets in the Gulf were mixed in early trade on Sunday, with the Saudi Index outperforming the region amid rising oil prices.

Oil rose on Friday, gaining about 4 per cent on the week as a global energy crunch boosted US prices to their highest in almost seven years, with big power users struggling to meet demand.

Saudi Arabia’s benchmark index (.TASI) gained 0.6 per cent, led by a 3.4 per cent rise in Al Rajhi Bank (1120.SE) and 1.3 per cent gain in petrochemical maker Saudi Basic Indutries (2010.SE).

In Abu Dhabi, the index (.ADI) edged up 0.1 per cent, with conglomerate International Holding Co (IHC) (IHC.AD) rising 1 per cent, while its unit Alpha Dhabi Holding (ALPHADHABI.AD) advanced 1.4 per cent.

IHC has agreed to buy a 41 per cent stake in Nassar Al Refaee Trading Company, a fruit and vegetable import-export business, in a 166 million dirhams ($45.20 million) deal, Reuters reported a company source as saying.

Dubai’s main share index (.DFMGI) fell 0.1 per cent, hit by a 1.2 per cent fall in blue-chip developer Emaar Properties (EMAR.DU).

Average residential property prices in Dubai rose 4.4 per cent in the 12 months to August, the highest annual growth since February 2015, real estate investment firm CBRE Group said on Thursday.

Even before the pandemic, the long-term economic trend in the United Arab Emirates had been sluggish since the 2014-2015 oil price crash.

Supply has outpaced demand for new houses and apartments for years in a market where most of the population are foreigners, many of whom left during the pandemic.