Stock markets in the Gulf ended mixed on Thursday helped by news of aggressive economic stimulus from China, while geopolitical tensions in the region weighed on sentiment.
China’s central bank on Tuesday unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk and back towards the government’s growth target.
Driving the optimism was an official readout from a meeting of China’s politburo that said the country would deploy “necessary fiscal spending” to meet this year’s economic growth target of roughly 5%.
Saudi Arabia’s benchmark index gained 0.3%, with ACWA Power Company advancing 4.8%.
On the other hand, oil giant Saudi Aramco dropped 0.5%.
Oil prices – a catalyst for the Gulf’s financial markets – slipped, reversing earlier gains, on a media report that Saudi Arabia, the world’s top crude exporter, will give up its price target in preparation for raising output.
Dubai’s main share index advanced 0.8%, led by a 4.3% rise in Parkin Company.
Most Gulf markets in red on rising tensions in the region
The United Arab Emirates central bank raised its forecast for 2024 GDP growth to 4% from a previous forecast of 3.9%, citing improvement in the oil sector’s performance, the state news agency (WAM) reported on Wednesday.
In Abu Dhabi, the index closed flat.
Israel rejected proposals on Thursday for a ceasefire with Hezbollah and conducted a military exercise simulating manoeuvres in Lebanon, defying allies including the United States which had called for an immediate halt in fighting.
On Wednesday, Israel’s army chief made the most explicit public comment yet on the possibility of a ground assault on Lebanon, telling troops near the border to be prepared to cross.
The Qatari benchmark was up 0.4%, with Qatar National Bank gaining 0.2%.
Outside the Gulf, Egypt’s blue-chip index finished 0.1% higher.
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SAUDI ARABIA rose 0.3% to 12,374
ABU DHABI was flat at 9,514
DUBAI gained 0.8% to 4,527
QATAR added 0.4% to 10,582
EGYPT up 0.1% to 31,277
BAHRAIN eased 0.3% to 2,014
OMAN lost 0.5% to 4,702
KUWAIT down 0.1% to 7,790
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Source: Brecorder
