The Qatari index closed higher today, Sunday, supported by rising oil prices following cuts in supply by major producers, while the Saudi index closed lower due to weak corporate profits. Oil prices, a main driver of Gulf financial markets, increased on Friday and marked their sixth consecutive week of gains, with investors optimistic that rising demand and reduced supply will keep prices elevated.
Saudi Arabia decided on Thursday to extend its voluntary production cut by one million barrels per day until the end of September. Russia also announced a reduction in its oil exports by 300,000 barrels per day next month.
The Qatari index rose by 0.2 percent, ending two sessions of losses, driven by a three percent increase in the shares of Baladna and a one percent rise in Qatar Fuel. Shares of Qatar Islamic Bank and Qatar International Islamic Bank increased by 2.2 percent and 1.1 percent, respectively.
The Saudi index continued its losses for the seventh consecutive session, closing down 0.2 percent, with Savola Group's shares falling by 5.5 percent and Halwani Bros decreasing by 8.9 percent. Halwani Bros announced higher losses for the second quarter of the year compared to the same period last year.
Outside the Gulf region, Egypt's leading stock index rose by 1.4 percent, following three sessions of losses, with all sectors advancing. The shares of New Urban Communities Company soared by 11.3 percent, while the stock of ElSewedy Electric increased by 4.2 percent.
