Saudi, Qatar stock markets gain after OPEC, non-OPEC oil deal

      Published on Tuesday, 13 December , 2016      149 Views     
Saudi, Qatar stock markets gain after OPEC, non-OPEC oil deal

  • Business

Stock markets in Saudi Arabia and Qatar posted broad-based gains on Sunday after OPEC and non-OPEC oil producers a day earlier reached their first deal since 2001 to curtail oil output jointly in a drive to prop up prices.



It is not clear whether oil prices can rise much further in response to the deal, and many fund managers think Saudi petrochemical shares are to a large extent now fairly valued after their rebound in the past six weeks.

Nevertheless, the oil producers’ deal supported fresh buying of stocks and the main Saudi index added 1.1 percent to 7,198 points, its highest close this year, in heavy trade.

The Saudi petrochemical index surged 2.4 percent as higher oil prices could boost profit margins. Saudi International Petrochemical Co (Sipchem) gained 4.0 percent after saying an affiliate had signed a contract with South Korea’s eTEC E&C for work costing 542.6 million riyals ($144.6 million) to raise the efficiency of operations at its methanol plant in Jubail.

Construction firm Khodari jumped by its 10 percent daily limit in very heavy trade to 12.95 riyals, nearing major technical resistance on its May peak of 13.10 riyals.

The stock has been buoyed in recent days by signs that the government is making long-delayed payments on its debts to the construction sector, which could help Khodari directly and also indirectly by improving liquidity in the economy and helping some stalled projects go ahead. Higher oil prices may make it easier for the government to find money for those payments.

Some insurance sector stocks favoured by local retail speculators also surged, with Wafa Insurance up 6.4 percent.

In Qatar, the index added 1.3 percent at 10,188 points, climbing above technical resistance on the 200-day average for the first time since early November, although trading volume was modest.

Mesaieed Petrochemical gained 3.7 percent and oil drilling rig provider Gulf International Services surged 2.5 percent, while Qatar Commercial Bank jumped 4.1 percent.

Bourses in the United Arab Emirates, Bahrain and Egypt were shut to mark the birthday of Prophet Mohammed.



http://www.arabianbusiness.com/

Keywords:
Category Business | 2016/12/13 latest update at 6:00 AM
Source : | Photocredit :
150 Views
Comments Add comment



Gulf Media

Related Articles

The editorial staff of Qatar Today would like to give all of its readers from Gulf and Qatar and the whole world the opportunity to participate actively in the development of the website! If you have something interesting, fun, scandalous - just something worth to be seen from more people. Capture it and share it in the Qatar Today with a short text.

Do you have information you want to reach our readers?

Send article/s

You can subscribe to our Facebook, Twitter and Google pages or use our RSS feed channel to always read the most important news about Qatar, the Gulf and the world.


Only international actions can settle the world’s ‘enormous and diverse cross-border challenges’, Qatar tells UN Assembly Emir

Only international actions can settle the world’s ‘enormous and diverse cross-border challenges’, Qatar tells UN Assembly

Pointing to “the strategic importance of the Gulf region”, Sheikh Tamim Bin Hamad al-Thani Amir maintained that its stability warrants…

Amir congratulates President of Colombia Emir

Amir congratulates President of Colombia

Amir H H Sheikh Tamim bin Hamad Al Thani, Deputy Amir H H Sheikh Abdullah bin Hamad Al…

Iran’s Rouhani Says Boosting Ties With Qatar A Priority Emir

Iran’s Rouhani Says Boosting Ties With Qatar A Priority

Iranian President Hassan Rouhani described enhancement of relations with neighbors, Qatar in particular, as an indispensable part of…

Amir performs Eid Al Fitr prayer; receives well-wishers Emir

Amir performs Eid Al Fitr prayer; receives well-wishers

HH the Amir Sheikh Tamim bin Hamad Al-Thani performed Tuesday morning Eid Al Fitr prayer with citizens at…

GULF TV

Popular in GULF TV

About DFI

34348 Views

Doha Film Institute is dedicated to film appreciation, education, and building a dynamic film industry in Qatar that…

Latest videos in GULF TV

Events

Qatar Events

Lifestyle

Life

Culture

Culture News

Sport

Sport

Science & Technology

Science & Technology

Government

Government News