Saudi Arabia's stock market ended higher on Sunday, in response to rising oil prices and strong earnings, while the Qatari index retreated amid falling natural gas prices.
On Friday, crude prices settled up as hopes of stronger Chinese demand and a weakening dollar outweighed concern about a global economic downturn and the impact of interest rate rises on fuel use.
Saudi Arabia's benchmark index (<.TASI>) gained 0.4%, led by a 1.3% rise in oil giant Saudi Aramco (<2222.SE>) and 1.8% increase in Riyad Bank (<1010.SE>), which reported a sharp rise in quarterly profit. Among other gainers, National Shipping Company of Saudi Arabia (<4030.SE>) advanced 2.9%. Post trading hours, the company reported a quarterly net profit of 269.9 million riyals ($71.82 million), up from 18 million riyals a year ago.
Saudi National Bank (<1180.SE>), the country's biggest lender, inched 0.3% higher, after posting a net profit of 4.725 billion riyals ($1.26 billion) in the quarter, up from 3.98 billion riyals a year earlier. That was below the EFG Hermes estimate of 5.25 billion riyals. India's Yes Bank quarterly profit falls 32% on provision set-asides Separately, the kingdom's crown prince on Sunday launched an initiative to attract investment in supply chains to and from the kingdom, with an aim of raising an initial 40 billion riyals. read more
The Qatari index (<.QSI>) fell 0.5%, hit by a 1.1% fall in petrochemical maker Industries Qatar (<IQCD.QA>).
The Qatari market could see more price corrections with natural gas prices falling sharply last week, said Daniel Takieddine, CEO MENA BDSwiss. "The commodity could extend losses as production outpaces expectations and warm weather limits demand, putting more pressure on the stock market," he said.
