Stock News: Gulf Markets Edge Up In Early Trade

Gulf stock markets rose modestly in early trade on Monday as some investors took profits after big gains in the past two days, but positive sentiment over oil prices and Saudi Arabia’s 2015 budget continued to encourage buying.

The Dubai index climbed 0.6 per cent after jumping 9.9 per cent on Sunday and 13.0 per cent on Thursday. Dubai Financial Market rose 4.2 per cent, a fresh sign that investors believe the bruising downtrend in Gulf equities of recent weeks has ended and that investor activity will revive.

Qatar rose 1.9 per cent; Qatar Islamic Bank was the most heavily traded stock, jumping 6.2 per cent.

Gulf International Services, an oil and gas drilling services firm which was hit hard during recent weeks because of the slump in oil prices, climbed 5.3 per cent.

Abu Dhabi’s index was flat while Kuwait edged up 0.1 per cent. Oman gained 1.3 per cent.

Brent crude oil climbed over one per cent to above $62 per barrel in Asian trade on Monday morning. Although the longer-term outlook for oil remains cloudy, analysts said Brent had received broad support after testing $60 earlier this month, and that a consensus was growing that prices would likely remain above that level for the rest of this year.

Saudi Arabia’s 2015 budget is expected to be announced as soon as on Monday afternoon and contrary to the market’s earlier fears, the budget is not anticipated to cut spending much in response to cheaper oil.

Saudi Finance Minister Ibrahim Alassaf went out of his way to reassure the market last Wednesday when he said his government would continue spending strongly on development projects and social benefits in the budget.