Gulf stocks rise in early trade as crude oil scales two-year highs

Stock markets in the Gulf surged early Tuesday as crude oil prices climbed to a two-year high.

Brent oil climbed 3.8 percent overnight to settle at $59.02 a barrel after major producers said the global market was on its way to rebalancing, and the commodity traded near that level on Tuesday morning.

Riyadh’s index rose 0.5 percent as all 13 petrochemical shares that were trading on Tuesday morning rose, including bellwether Saudi Basic Industries which was up 1.0 percent.

The main stock index had dropped 1.4 percent on Monday, diverging from Brent oil, amid rumours that index compiler FTSE might not upgrade Riyadh to emerging-market status on Sept. 29.

Other stocks which had been hit on Monday were also up, including dairy maker Almarai, which rebounded 0.6 percent.

Qatar’s stock index was up 0.6 percent, heading for its sixth consecutive session of gains. Commodity linked shares were some of the top performers, with oil and drilling service provider Gulf International Services added 3.5 percent.

The Dubai index was up 0.3 percent as 12 shares rose and 10 others declined.

In Abu Dhabi, Dana Gas rose 1.4 percent, recovering slightly from its steep declines, as a London court hearing resumed on Monday on its maturing sukuk issue.

The main index was flat.

Source: Reuters