Oil lifts markets, but global concerns weigh

Dubai : Rising oil prices helped Middle East indexes eke out modest gains yesterday, though shares more exposed to foreign funds followed global markets lower, weighed down by a list of worries including North Korea.

Brent oil surged 3.8 per cent overnight to settle at $59.02 a barrel after major producers said the global market was on its way to rebalancing, and crude held near that level on Tuesday.

Riyadh’s index rose 0.2pc as most petrochemical shares advanced, including bellwether Saudi Basic Industries which added 1.4pc.

The main stock index had dropped 1.4pc on Monday amid rumours that index compiler FTSE might not upgrade Riyadh to emerging-market status on Sept. 29.

Although no fresh news or reports were released overnight to quash the speculation, investors bought shares that had been hit on Monday including lender Samba Financial Group; it rebounded 0.8pc on Tuesday regaining some of Monday’s 2.8pc decline.

Qatar’s stock index climbed 1.4pc, its largest single-day rise since July 13 as local and regional funds were again net buyers, bourse data showed.

The Dubai index added 0.2pc as stocks favoured by local day traders were the most active; builder Drake & Scull climbed 2.4pc.

In Abu Dhabi, Dana Gas rose 1.4pc, recovering slightly from its steep declines over the last several days, as a London court hearing resumed on Monday on its maturing sukuk issue.

Rising tensions between North Korea and the United States hurt Egyptian shares which are most vulnerable to foreign fund flows; private equity company Qalaa Holdings dropped 5.7pc.

The main index edged up by 0.2pc on the back of gains in shares commonly traded by local investors; media conglomerate Orascom Telecom jumped
 8.3pc.