Saudi Arabian stocks led regional equities higher on Sunday amid speculation that Opec may freeze oil production at a meeting later this month, a move that may prompt depressed oil prices to rally.
Stocks in the kingdom also gained on the back of a rise in global markets on Friday, with optimism that the ongoing G20 meeting in China may yield measures to boost the global economy.
The benchmark Tadawul index increased 1.2 per cent to 6,099.03 in Riyadh on Sunday, led by Al Rajhi Bank, the country’s biggest publicly traded lender.
Meanwhile, Dubai's key gauge, the DFMGI, advanced 0.7 per cent to 3,535.36, boosted by Emaar Properties.
“There is expectation building up with the Opec meeting and there has been positive statements around the G20 summit as well,” said Sachin Mohindra, a portfolio manager at Invest AD, an asset manager in Abu Dhabi. “That is also having an effect.”
Mr Mohindra said that while the UAE remained his top pick country-wise, he was increasingly adding select Saudi Arabian stocks as the benchmark overall has underperformed its regional peers, leaving a number of stocks looking attractive in terms of valuations.
Leaders of the G20 wrap up their meeting on Monday amid increased expectations by investors that some of the world’s biggest economies, including the US, may start embarking on more fiscal stimulus following meagre returns from about a decade of ultra-low interest rates.
Opec nations meet in Algeria to discuss a possible freeze from September 26 to 28.
mkassem@thenational.ae
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