Saudi bourse gets boost on hopes for Opec oil deal

Most analysts believe the Opec will cobble together a deal to reduce some production at its meeting on Wednesday in Vienna.

Renewed optimism over a grand oil production deal in Vienna led shares in Saudi Arabia to rise on Wednesday to their highest level of the year.

Crude oil futures posted their biggest gain in two weeks on optimism that Opec ministers were on the brink of salvaging a production cut deal at on Wednesday’s meeting in Vienna. Brent crude futures rose by as much as 8.2 per cent to US$50.18 per barrel in the late afternoon.

In Saudi Arabia, the Tadawul ended the day 1.5 per cent higher at 7,000.18, the index’s first close over 7,000 since December last year, with petrochemicals giant Sabic surging to a 15-month high of 94.75 Saudi riyals.

Optimism over a deal affected stocks throughout the region, with Bloomberg’s GCC 200 Index closing at 1.5 per cent higher at 62.71 – just below its highest level for 2016.

The Dubai Financial Market General Index ended the day 0.8 per cent higher, closing at a seven-week high of 3,360.91, led by index bellwether Emaar Properties.

The developer’s shares closed up 1.2 per cent at Dh6.68, with DIB and Emirates NBD also posting strong gains.

Shares in DXB Entertainments dominated trading in Dubai, accounting for more than 30 per cent of volume. The theme park operator’s shares closed 2.7 per cent lower at Dh1.47.

In the capital, the Abu Dhabi Securities Exchange General Index closed up 1.1 per cent at 4,308.77, as Etisalat shares had their best day in 12 months.

The telco’s shares, the heaviest weighted on the Abu Dhabi index, finished the day 6 per cent higher at Dh18.65, with Aldar Properties and UNB also gaining. FGB shares fell 2.1 per cent to Dh11.60.

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