Gulf Stocks Post Best Streak in 4 Months on China, Oil GainsBy and
Gulf Arab stocks made their winning streak the longest in more than four months, after a surge in Asian equities and oil’s biggest gain this month.
The Bloomberg GCC 200 Index, a gauge of the region’s 200 biggest and most-liquid shares, closed 1.8 percent higher to the highest level in almost three weeks. That marks a fifth-day of gains, the most since April 30. The measure climbed above its 20-day moving average for the first time since July. Saudi Arabia’s Tadawul All Share Index added 2.3 percent, leading the advance among the main markets of the six-nation Gulf Cooperation Council.
Equities in the GCC are tracking gains in major Asian markets and the U.S. on signals that China’s efforts to curb volatility in its stock market, including raising margin requirements, are succeeding almost a month after the world’s second-biggest economy weakened its currency. Brent crude, which has fueled economic growth in the Gulf, jumped the most this month on Tuesday.
The advance is “on the back of the positive momentum in the international markets overnight and this morning in Asia," said Muhammad Shabbir, the Dubai-based head of equities and funds at Rasmala Investment Bank Ltd. "Oil is also better. Valuations have become more reasonable."
Gulf oil ministers plan to meet tomorrow in Doha, Qatar to “unify" the region’s policies, Kuwait’s official news agency KUNA reported, citing the country’s oil minister Ali Al-Omair. Brent rose as much as 1.1 percent, before trading 0.6 percent lower at $49.44 per barrel at 2:29 p.m. in London. It jumped 4 percent on Tuesday, the most since Aug. 31.
Al Rajhi Bank climbed 2.8 percent, contributing the most to the Tadawul’s increase. Dubai’s DFM General Index closed 1.4 percent higher on about 685 million dirhams ($187 million) of trading. That’s more than twice the total for each of the last three days, and the most since Aug. 30.
Qatar’s QE Index and Abu Dhabi’s ADX General Index advanced 2 percent each, and gauges in Kuwait and Oman added 1.6 percent and 0.4 percent, respectively. Bahrain’s measure retreated 0.1 percent.
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