Most Gulf markets rebound on outlook for oil demand growth

Sept 15 (Reuters) – Most major Gulf markets rallied on Thursday as investors appeared to move away from the prospect of tighter monetary policy fueled by inflation and instead bet on an improving outlook for long-term oil demand.

Global oil demand growth will rebound strongly next year as China eases its coronavirus lockdown, the International Energy Agency said on Wednesday. read more

Abu Dhabi Index (.FTFADGI) Bouncing back from the previous session’s small losses to end its longest winning streak in a month, it rose 0.5%.

“Abu Dhabi equities rebounded after investors absorbed Wednesday’s shock to the U.S. inflation data,” said Ahmed Fouad, head of sales at Emporium Capital. “As such, the market is likely to remain strong in the coming days due to strong fundamentals.”

Abu Dhabi National Energy Company (TAQA.AD) After Multiply Group, a similar gain in the previous session added 14.7% (multiply.AD) Acquired a 7.3% stake in the group for AED 10 billion ($2.72 billion). Multiply Group also rose 14.6%.

Real estate heavyweights lead Dubai stock market gains, push index higher (.DFMGI) 0.9% higher.

The UAE will benefit from easing of COVID restrictions in China, which the Gulf state counts as its biggest trading partner.

Qatar Index (.QSI) Boosted by a sharp rise in natural gas prices, it rose 1.3%.

Fouad added: “While the EU was discussing solutions to the energy crisis, the energy price cap was ruled out, followed by a spike.”

However, Saudi Arabia’s benchmark index (.one) Down 0.5 percent, banks and petrochemicals led losses as the market remained reeling from a volatile energy market.

Egyptian blue chips (.EGX30) The index fell 1.1% for the third day in a row as concerns persisted about the outlook for global economic growth.

(1 USD = 3.6729 UAE Dirham)

Reporting by Shakeel Ahmad in Bengaluru; Editing by Toby Chopra

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