RIYADH: Saudi Arabia’s stock market closed higher on Sunday in response to Friday’s increase in oil prices, while the Egyptian index was down due to profit-taking.
Oil prices, which are a key driver of the Gulf’s financial markets, rose by more than 2% on Friday after energy companies reported positive earnings and U.S. data showed that crude production was declining while fuel demand was increasing.
According to EIA data this week, U.S. crude oil and gasoline inventories fell more than expected last week, as demand for motor fuel picked up ahead of the peak summer driving season.
Saudi Arabia’s benchmark index (.TASI) added 0.3%, with Retal Urban Development Co (4322.SE) advancing 2.9% and Dr Sulaiman Al-Habib Medical Services (4013.SE) closing 2.8% higher. In addition, oil giant Saudi Aramco (2223.SE) gained 0.8%.
In Qatar, the index (.QSI) rose 0.4%, with petrochemical maker Industries Qatar (IQCD.QA) climbing 1.5%. Outside of the Gulf, Egypt’s blue-chip index (.EGX30) declined 0.7%, with El Sewedy Electric (SWDY.CA) sliding about 3%.
Egypt is considering approving the currencies of its commodity trade partners, including China, India, and Russia, to reduce the need for dollars, according to Supply Minister Ali Moselhy’s remarks to reporters on Saturday.
Rise in oil prices
The rise in oil prices and positive earnings reports from energy firms have boosted investor sentiment in the Saudi stock market, leading to a positive closing for the day. Meanwhile, the Egyptian index’s decline is attributed to profit-taking, with investors selling off shares to lock in gains.
The Egyptian government’s consideration of accepting the currencies of commodity trade partners, including China, India, and Russia, is part of its efforts to reduce its reliance on the U.S. dollar.
The stock markets of Saudi Arabia and Qatar are expected to continue their positive trend in the coming days as oil prices remain high, while the Egyptian market may see some fluctuations due to ongoing profit-taking.
