Bahrain edges up, most other markets end lower

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Bahrain All Share Index yesterday edged up as most major stock markets in the Gulf ended lower on Wednesday, mirroring a slide in oil prices. Bahrain closed at 1,703.22 points marking an increase of 1.43 points above the previous closing, thanks to rises in Communications Services Sector and Materials Sector.

Bahrain Islamic Index has closed at 669.33 points marking an increase of 0.67 points above the previous closing. Results indicated that 107 equity transactions took place with a volume of 3,421,933 worth BD 924,440. Investors traded mainly in the Materials Sector representing %63.56 of the total value of securities traded.

Oil prices fell yesterday after US crude inventories unexpectedly rose and amid concerns about a slowing Chinese economy. Brent crude was down 46 cents, or 0.6%, at $78.63 a barrel by 0950 GMT.

On Tuesday, it fell nearly $2 after touching its highest in almost three years at $80.75. Oil prices have been charging higher as economies recover from pandemic lockdowns and fuel demand picks up, while some producing countries have seen supply disruptions. Saudi Arabia’s benchmark index closed flat as gains in consumer shares were capped by losses in energy stocks, with Saudi Arabian Mining Company increasing 3.3%, while Oil giant Saudi Aramco, which saw its biggest intra-day gain in the last session since March 17 last year, was down 1%.

Aseer Trading Tourism & Manufacturing surged nearly 10% in its biggest intra-day gain since March 29 this year after the government announced its strategy to develop the Aseer region into a tourism hub as part of the kingdom efforts to diversify its oil-dependent economy, with tourism contributing 10% of gross domestic product by 2030.

Saudi Arabia’s crown prince Mohammed bin Salman’s 50 billion riyal ($13 billion) strategy is to develop the region on the Red Sea coast that would attract 10 million visitors by 2030. Separately, Saudi Arabia’s stock exchange will likely end the year with more than 30 new listings, Mohammed El-Kuwaiz, the chairman of Saudi Arabia’s Capital Markets Authority, said on Monday.

Pipeline of expected listings is significant, with five new listings approved just in the past two days, three on the main exchange and two in the parallel market.

The Abu Dhabi index closed down 0.6%, hit by a 1.1% drop in United Arab Emirates’ largest lender First Abu Dhabi Bank and a 0.6% ease in Emirates Telecommunications Group. Dubai’s main share index also declined 0.2%, weighed by a 0.8% fall in Dubai Islamic Bank and a 0.7 ease in Air Arabia.

Outside the Gulf, Egypt’s blue-chip index dropped 0.5%, extending losses for the third day in a row. Commercial International Bank - COMI decreased 1.3% and cigarette maker Eastern Company tumbled 3.3%. The Qatari index, however, was up 0.4% as Industries Qatar increased 1.5% in its seventh consecutive rise, while Commercial Bank advanced 1.5%.