Most markets end higher as Omicron fears recede

TDT | Manama

The Daily Tribune – www.newsofbahrain.com 

Most stock markets in the Gulf ended higher yesterday, as worries around the Omicron coronavirus variant eased after a study suggested the strain might be less severe than feared.

The risk of needing to stay in hospital for patients infected with the Omicron variant is 40% to 45% lower than those with the Delta variant, according to research by London’s Imperial College published on Wednesday.

Saudi Arabia’s benchmark index (.TASI) gained 0.6%, with Al Rajhi Bank (1120.SE) rising 0.9% and petrochemical maker Saudi Basic Industries Corp (2010.SE) finishing 1.4% higher.

Crude prices, a key catalyst for the Gulf’s financial markets, were broadly stable.

However, fears over the potential impact on fuel demand from mobility restrictions have receded as the Organisation of the Petroleum Exporting Countries, Russia and allies have left the door open to reviewing their plan to add 400,000 barrels per day of supply in January.

Dubai’s main share index (.DFMGI) rose 0.6%, led by a 3.4% leap in top lender Emirates NBD Bank (ENBD.DU) and a 1.1% increase in Emirates Integrated Telecommunications (DU.DU).

The Dubai market remains fundamentally strong and could recover more broadly as soon as more data on Omicron is made available, said Farah Mourad, senior market analyst of XTB MENA.

The Abu Dhabi index (.ADI) snapped four sessions of losses to close 0.4% higher, with telecoms firm Etisalat (ETISALAT. AD) advancing 1.2%.

But, the Abu Dhabi index posted a weekly loss of 4.8%, its biggest since March 2020.

The Qatari index (.QSI) edged 0.1% higher, supported by a 0.9% gain in the Gulf’s biggest lender Qatar National Bank (QNBK.QA).

Outside the Gulf, Egypt’s bluechip index (.EGX30) climbed 1%, with Fawry for Banking Technology and Electronic Payment (FWRY.CA) jumping 2.9% after it announced plans to establish a consumer finance company.

The Central Bank of Egypt said on Thursday it had extended measures to ease the impact of the coronavirus until June 2022.