Despite a minor decline in oil prices, the majority of the major stock markets in the Gulf region opened marginally higher on Monday. However, Abu Dhabi looked set to continue its losing run.
Oil prices, a major driver of Gulf financial markets, slipped lower in early trade on Monday but held onto most of the gains from the previous week due to the likelihood that China, the world’s largest oil consumer, will see an economic revival this year.
At 3:49 GMT, Brent crude futures were down 46 cents, or 0.5%, at $87.17.
The national oil company and index heavyweight Saudi Aramco (2222.SE) gained 0.6%, and Sulaiman Al-Habib Medical Services Group (4013.SE) gained 0.8%. These gains helped Saudi Arabia’s benchmark stock index (.TASI) inch up 0.1%.
East Pipes Integrated Company For Industry (1321.SE) saw one of the biggest gains among other companies after concluding two separate contracts on Sunday totaling 569 million riyals ($151.5 million).
Dubai’s main stock index (.DFMGI) increased 0.1%, helped by gains of 1.4% and 1.3% in Emirates Central Cooling System Corp. and low-cost carrier Air Arabia (AIRA.DU) (EMPOWER.DU).
Lenders helped to drive a 0.3% increase in Qatar’s main stock index (.QSI). The largest lender in the Gulf by assets, Qatar National Bank (QNBK.QA), as well as Qatar International Islamic Bank (QIIB.QA), both experienced gains of 2.1% and 1.8%.
The benchmark index for Abu Dhabi (.FTFADGI) opened 0.2% down, but losses continued for the fourth session in a row as conglomerate International Holding Co (IHC.AD) and Alpha Dhabi (ALPHADHABI.AD) also saw declines. (1 dollar = 3.7548 riyals)