Major Gulf markets rise in early trade

(Reuters) – Major stock markets in the Gulf traded higher on Wednesday, in line with Asia shares, as financial markets and oil prices rallied, with a closer-than-anticipated presidential race sparking volatility.

FILE PHOTO: Saudi traders are seen as they monitor stock information at the Saudi stock market in Riyadh, Saudi Arabia August 25, 2020. REUTERS/Ahmed Yosri

Asian shares and U.S. equity futures surged as the presidential election proved far closer than polls had predicted between incumbent Donald Trump and Democratic contender and wide favourite Joe Biden.

Crude prices rose above 2% and the move come ahead of data expected to show U.S. crude stockpiles rose 900,000 barrels last week after gaining 4.3 million barrels in the prior week. [O/R]

Saudi Arabia’s benchmark index .TASI advanced 1.2%, buoyed mainly by gains in the financial stocks including National Commercial Bank 1180.SE, which advanced 2.3%, while oil behemoth Saudi Aramco 2222.SE firmed 0.9%.

On Tuesday, Aramco reported a 44.6% drop in third-quarter net profit as the coronavirus crisis continued to choke demand and weigh on crude prices.

However, the net profit was in line with analysts’ estimate provided by Refinitiv.

Dubai’s main share index .DFMGI gained 0.9%, led by a 1.3% rise in its largest lender Emirates NBD ENBD.DU.

The bank confirmed on Tuesday it is in discussions with Lebanon’s Blom Bank BLOM.BY regarding the potential acquisition of Blom Bank Egypt.

The Abu Dhabi index .ADI was up 0.7%, driven by a 1.2% rise in the country’s largest lender First Abu Dhabi Bank FAB.AD.

In Qatar, the index .QSI increased 0.5%, with Qatar Fuel Co QFLS.QA gaining 1.6%.

Source: Read Full Article