Saudi stocks closed higher, Thursday, and the stock index remained at its highest level in 15 years, with the rise in oil prices, and Qatari stocks continued their rise for the 12th in 13 sessions.
Investors remain optimistic in the region, said Wael Makarem, market analyst at Exness, and that stocks are supported by a strong corporate earnings season and high levels of energy prices.
The Saudi Stock Exchange index rose 0.3%, supported by an increase in the share of Dr. Sulaiman Al-Habib Medical Services Group, by 5.2%, and a rise in the share of Al-Rajhi Bank by 0.6%.
The price of oil rose to its highest level in three years to $ 86 a barrel due to the lack of supply and the global energy crisis, but prices fell somewhat in the process of taking profits.
Aramco shares rose 0.5% after HSBC raised its share price target to 38.8 ($10.34) from 37.5 riyals.
A Reuters poll of economists showed that the six member states of the Gulf Cooperation Council will witness faster growth rates next year, and economists have warned that the decline in oil and gas prices poses the greatest risk to these countries.
The economies of the Gulf Cooperation Council countries depend on oil and gas exports, and any disruption in energy prices due to political tensions or a slowdown in the global economy will hurt the recovery in these countries.
Saudi Arabia is expected to witness a growth rate of 5.1% next year, compared to 2.3% this year, and a sharp contraction of 4.1% last year.
The Qatar Stock Exchange index rose 0.1%, supported by a 3.5% rise in the share of Nakilat, which achieved gains in seven of the last eight sessions.
Nakilat, one of the world’s largest liquefied natural gas carriers, reported on Sunday a net profit of 1 billion riyals in the nine months to September 30, up from 899.5 million riyals a year ago.
And the markets of Egypt and the UAE are closed for an official holiday.