Saudi index hits 16-year high as oil prices recover

A general view shows the Dubai financial market after Joe Biden won the U.S. presidency, in Dubai, United Arab Emirates, November 8, 2020. REUTERS/Christopher Pike

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March 29 (Reuters) – Gulf indices ended higher on Tuesday, with the Saudi index hitting its highest level in 16 years, as tight supply and stable demand pushed oil prices higher ahead of talks. peace between Russia and Ukraine.

Oil prices recouped some of the previous session’s losses as supplies from Kazakhstan continued to be disrupted and major producers showed no signs of being in a rush to significantly increase production.

Kazakhstan is expected to lose at least a fifth of its oil production for a month after the storm caused damage to berths used to export Caspian Pipeline Consortium (CPC) crude, the energy ministry said.

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“Saudi crude could see its price rise as the country maintains a bullish view of the market despite risks to demand in China,” said Wael Makarem, Senior Market Strategist – MENA at Exness.

Saudi Arabia’s benchmark index (.TASI) rose 0.3% to 13,114.89, its highest level since June 2006, as gains in materials stocks were limited by losses in the stock market. energy sector.

Shares of Al Masane Al Kobra Mining Co jumped 30% on their stock market debut, rising as high as 81.9 riyals from their IPO price of 63 riyals.

Investors continued to flock to Dubai shares after state-owned Dubai Electricity and Water Authority (DEWA)’s IPO subscription launched last week to raise up to 8.06 billion dirhams ($2.19 billion). Read more

The Abu Dhabi index (.FTFADGI) gained for the sixth consecutive session, closing up 0.7%.

Shares of Waha Capital (WAHA.AD) rose 2.4% after the company approved a dividend payout on Monday.

The Qatari index (.QSI) fell for a second consecutive session, ending down 0.5%.

Outside the Gulf, Egypt’s blue chip index (.EGX30) rose 1.4%.

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Reporting by Tanvi Mehta in Bangalore; Editing by Amy Caren Daniel

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Steve R. Hansen