ICEC

Oil price rebound may lift Gulf bourses today

A recovery in oil prices and global equities may help to lift Gulf stock markets Thursday after a weak performance in the region earlier this week.

Brent oil futures have risen 0.6 percent on Thursday morning to $43.34 per barrel, extending a rebound from a four-month low of $41.41 hit this week.

On Wednesday Riyadh’s index, last at 6,238 points, dropped below technical support on the June low of 6,257 points. It may now rise back above that support, at least in the short term.

Saudi non-oil related sectors, including insurance and healthcare, have been outperforming the index as investors search for value in those sectors.

In Qatar, petrochemical and metals producer Industries Qatar beat analysts’ estimates; its second-quarter net profit fell 13.6 percent to 1.27 billion riyals ($348.8 million) but exceeded the average forecast of 799.9 million riyals.

Bahrain’s largest listed lender, Ahli United Bank, may also outperform after it posted an 11.7 percent increase in second-quarter net attributable profit to $146.6 million, at the high end of expectations. SICO Bahrain and Arqaam Capital had forecast $145.1 million and $129 million respectively.

Source: Reuters

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