Gulf stocks extend rally, Qatar leads gains

Agencies | Dubai                                                   

The Daily Tribune – www.newsofbahrain.com

Most stock indexes in the Gulf rose in early trade on Wednesday as recession fears ebbed, extending a rebound from the recent selloff triggered by central banks globally raising interest rates to tame inflation.

Saudi Arabia's benchmark index (.TASI) gained 1.2%, bolstered by a 2.5% rise in Al Rajhi Bank (1120.SE) and a 2.2% gain in the kingdom's largest lender, Saudi National Bank (1180.SE). The index is up for a fourth session.

Saudi Arabia's foreign minister said on Tuesday that he saw no shortage of oil in the market, but a lack of oil refining capacity, making it necessary to invest more in capacity to process crude oil into various oil products.

Dubai's main share index (.DFMGI) extended gains to a fifth session, adding 1.1%, with Emirates Integrated Telecommunications (DU.DU) advancing 3.3%.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 1.2%, as strong U.S. corporate earnings and the expected resumption of Russian gas supply to Europe helped lift risk-on sentiment and eased fears of a recession, while the dollar was at two-week lows.

Abu Dhabi shares (.FTFADGI) gained 0.4%, led by a 0.6% rise in the United Arab Emirates's biggest lender, First Abu Dhabi Bank (FAB.AD). Stocks gained for a fourth consecutive session.

French company TotalEnergies (TTEF.PA) announced on Tuesday an expansion of its strategic alliance with the Abu Dhabi National Oil Company (ADNOC), which would examine new areas including the supply of diesel from the United Arab Emirates to France.

The Qatari benchmark (.QSI) gained for a fourth straight session, advancing 1.8%, as almost all the stocks in the index were in positive territory including the Gulf's biggest lender, Qatar National Bank (QNBK.QA).