Mideast Stocks: Most Gulf markets in black on China stimulus prospect
Most stock markets in the Gulf ended higher on Monday, propelled by China's latest economic stimulus initiatives.
China's State Council on Sunday unveiled what it called a "special action plan" to boost domestic consumption, featuring measures including increasing residents' income and establishing a childcare subsidy scheme. This came just days after the country's financial regulator promised to relax consumer credit quotas and loan terms as it offers long-term backing to make available large sums.
Saudi Arabia's benchmark index gained 0.3%, extending gains for a second consecutive session, helped by a 2.5% rise in the country's biggest lender, Saudi National Bank . Alkhorayef Water and Power Technologies advanced 4.4% following a contract for operation and maintenance of water treatment plants worth 58.8 million riyals ($15.68 million).
A modest rebound in oil prices and China's economic stimulus measures boosted market sentiment, said George Pavel, General Manager at Naga.com. Additionally, the successful initial public offering of Arabian Company for Agricultural and Industrial Investment (Entaj) further lifted investor optimism.
Entaj surged 30% - the maximum daily limit allowed for newly-listed stocks during their first three days of trading - to 65 riyals in its debut. Dubai's main share index finished 0.6% higher, with blue-chip developer Emaar Properties advancing 3.1%.
In Abu Dhabi, the index added 0.3%. According to Pavel, the slight rebound in oil prices is providing some support to market sentiment and could further strengthen if oil markets stage a solid recovery.
Oil prices - a catalyst for the Gulf's financial markets - traded higher after the United States vowed to keep attacking Yemen's Houthis until the Iran-aligned group ends its assaults on shipping while Chinese economic data fuelled hopes for higher demand.
The Qatari index, however, eased 0.2%, hit by a 1.2% fall in Qatar Islamic Bank.
Outside the Gulf, Egypt's blue-chip index closed 0.4% higher, with Commercial International Bank climbing 1.6%.
SAUDI ARABIA gained 0.3% to 11,883
Abu Dhabi rose 0.3% to 9,451
Dubai added 0.6% to 5,171
QATAR eased 0.2% to 10,404
EGYPT was up 0.4% at 31,459
BAHRAIN was down 0.1% at 1,968
OMAN lost 0.1% to 4,379
KUWAIT added 0.1% to 8,430
($1 = 3.7504 riyals)
(Reporting by Ateeq Shariff in Bengaluru; Editing by Shreya Biswas)
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