Oil weighs on Saudi stocks, Dubai wins for seventh day

An investor browses the Dubai financial market after Joe Biden won the US presidency, in Dubai, United Arab Emirates, November 8, 2020. REUTERS / Christopher Pike

December 9 (Reuters) – The Saudi stock market ended lower on Thursday, following lower oil prices as some governments took action to slow the spread of the Omicron coronavirus variant, while the Dubai index declined increased for a seventh consecutive session.

Brent crude futures fell $ 1, or 1.3%, to $ 74.82 a barrel at 1:10 p.m. GMT after hitting a high of $ 76.70.

Saudi Arabia‘s benchmark index (.TASI) fell 0.5%, driven by a 0.7% decline in Al Rajhi Bank (1120.SE) and a 0.9% decline in the oil giant Saudi Aramco (2222.SE).

Saudi oil demand is not improving as refineries in Asia have not increased their orders, which could leave oil prices and the Saudi stock market without significant support, said Farah Mourad, market analyst. senior of XTB MENA.

In contrast, shares of Saudi Tadawul Group (1111.SE), the kingdom’s stock operator, gained more than 6% on their second day of trading.

In Abu Dhabi, the index (.ADI) fell 0.8%, penalized by a 2.3% drop from the country’s leading lender, First Abu Dhabi Bank (FAB.AD).

The main Dubai stock index (.DFMGI) rose 0.9%, extending its gains to a seventh consecutive session, supported by a 2.3% increase in the sharia-compliant lender Dubai Islamic Bank (DISB.DU) .

The UAE expects its shift to a 4.5-day workweek and a Saturday-Sunday weekend to boost their economy and make it a more attractive place to live for foreigners, has the Minister of Human Resources and Emiratization said on Wednesday. Read more

The market remains fundamentally oriented towards growth as new IPOs continue to be announced and the switch to the new weekend schedule may start to show its impact on investing and trading, Mourad said.

The Qatari benchmark (.QSI) edged up 0.1%, helped by a 0.5% increase from the Qatar Islamic Bank (QISB.QA).

Outside the Gulf, Egypt’s blue-chip index (.EGX30) ended up 0.7%, led by a 20% rise in Abu Qir fertilizer (ABUK.CA) following a block transaction worth 2.25 billion Egyptian pounds ($ 143.59 million).

($ 1 = 15.6700 Egyptian pounds)

Reporting by Ateeq Shariff in Bangalore; Editing by Vinay Dwivedi

Our standards: Thomson Reuters Trust Principles.