Firmer oil prices boost Gulf bourses in early trade

Firmer oil prices supported Gulf stock markets in early trade on Wednesday but trading volumes were thin as most investors stayed on the sidelines before Britain’s in-or-out European Union referendum on Thursday.

Saudi Arabia’s benchmark added 0.5 percent in the first 20 minutes as Brent crude held over $50 a barrel. Saudi Basic Industries, the Gulf’s largest listed petrochemical producer, added 0.9 percent and the banking sub-index was up 0.5 percent.

In Abu Dhabi, Union National Bank jumped 5.1 percent, heading for a second day of strong gains after Arqaam Capital said in a note on Tuesday that following the proposed merger between National Bank of Abu Dhabi and First Gulf Bank, “we expect UNB to be next”.

It said Abu Dhabi Commercial Bank might offer a substantial premium to UNB shareholders in a merger; ADCB shares did not change hands in early trade. NBAD, which soared earlier this week, edged up 0.6 percent while FGB fell 1.2 percent.

The main Abu Dhabi index edged down 0.03 percent, weighed down by a 0.5 percent decline in blue-chip Etisalat .

Dubai’s index edged up 0.3 percent with most turnover seen in Dubai Parks and Resorts and Emaar Properties. The amusement park developer rose 2.0 percent and the builder of the tallest tower in the world gained 0.6 percent.

In Qatar, the main index added 0.1 percent with gainers outnumbering losers eight to seven. Ezdan Holding Group , the largest listed developer, rose 1.1 percent.

Source: Reuters