Most Gulf stock markets experienced an increase, bolstered by the rising oil prices.

Most Gulf stock markets ended higher today, Thursday, buoyed by rising oil prices, with the Saudi index leading the gains.

Oil, a catalyst for the financial markets in the Gulf, rose by about 1%, continuing its gains amidst concerns about Middle East supply disruptions following a halt at an oil field in Libya and escalating tensions related to the conflict between Israel and Hamas.

The main Saudi index increased by 1.8%, bolstered by a 1% surge in the stock of Al Elm Company and a significant 6.9% rise in the shares of The Saudi National Bank, the country’s largest bank.

Money markets

However, the shares of petrochemical sector companies and cement companies were predominantly in the negative range.

Many Saudi companies issued regulatory statements late on Wednesday and on Thursday, stating that the decision by the state-owned energy company, Saudi Aramco, to increase the prices of raw materials and fuel for this year will lead to higher production costs and lower profits.

Among the declining stocks, the shares of the Saudi Basic Industries Corporation (SABIC) closed down by 1.7%, while the shares of Yamama Cement fell by 3.2%.

On the other hand, Saudi Arabia estimated its financing needs at about 86 billion Riyals ($22.93 billion) in 2024 according to the borrowing plan approved by Finance Minister Mohammed Al-Jadaan, as reported by the National Center for Debt Management.

The Qatari index increased by 0.5%, along with a 1.2% rise in the share price of the petrochemical company “Industries Qatar”.

The main index of the Dubai stock exchange rose by 0.2%, bolstered by a 1.5% increase in the share price of SALIK, a toll collection services company.

In Abu Dhabi, the index fell 0.7%.

The meeting minutes from the Federal Reserve on December 12th and 13th, released last Wednesday, indicated an increasing sentiment among policymakers that inflation is under control. However, there was concern about the potential damage that an excessively tight monetary policy could have on the economy.

Most Gulf currencies are pegged to the dollar, and typically, Saudi Arabia, the United Arab Emirates, and Qatar follow the lead of the United States when it comes to changes in monetary policy.

Outside the Gulf region, the main index of the Egyptian stock exchange fell by 0.2%, influenced by a 2.3% decrease in the share value of Eastern Company for Tobacco.