Crude buoys Gulf markets, Saudi leads

Dubai : Stock markets in the Gulf gained yesterday, supported by the rise in Brent oil to a three-year high above $70 a barrel, as the top Saudi Arabian petrochemical producer climbed after acquisition news.

The Saudi index was 0.6 per cent higher, with Saudi Basic Industries Corp adding 2.0pc to hit its highest level since early 2015.

It agreed to acquire a 24.99pc stake in Swiss specialty chemicals maker Clariant AG, becoming the Swiss company’s largest shareholder. SABIC did not say how much it was paying, but the 24.99pc stake was worth $2.4 billion based on market capitalisation.

However, Saudi Fertilizers fell 2.5pc after reporting fourth-quarter net profit dropped to 62.5 million riyals ($16.7 million) from 268.4‍ million riyals a year ago, mainly because of a scheduled shutdown of facilities but partly because of a rise in fixed and variable costs. In the first nine months, net profit rose 6pc.

Dubai’s index edged up 0.2pc with most stocks trading narrowly, although real estate firm Deyaar, the most heavily traded stock, climbed 1.6pc.

Education and healthcare investor Amanat added 3.5pc after saying it had bought an additional 40 million shares in schools operator Taaleem Holdings for 52 million dirhams ($14.2 million), making it the biggest shareholder with 21.7pc.

Qatar’s main index rose 1.1pc, gaining for a fourth straight day. Corporate earnings have suggested that damage to the economy from an embargo imposed by other Arab states has been less serious than feared, and the index is now within 5pc of its pre-embargo level last June.

Egypt’s market was closed for a public holiday.