Business
Gulf shares up as Israel-Iran ceasefire holds, Dubai hits 17-year high
Gulf shares up as Israel-Iran ceasefire holds, Dubai hits 17-year high
About this update from Al Rajhi Bank
By Md Manzer Hussain Stock markets in the Gulf closed higher on Thursday amid steady oil prices as a ceasefire between Israel and Iran appeared to be holding for a second day.Markets have been soothed by the ceasefire after 12 days of strikes on each other's territory. U.S. President Donald Trump said on Wednesday he would likely seek a commitment from Iran to end its nuclear ambitions at talks next week.Dubai's benchmark stock index DFM:DFMGI extended its rally to a fifth straight session, rising 1.3% to 5,684, its highest level in 17 years. Dubai Islamic Bank DFM:DIB climbed 4.9% and tolls operator Salik DFM:SALIK advanced 2.2%.The Abu Dhabi benchmark index ADX:FADGI rose 0.8%, aided by a 7.6% surge in RAK Properties ADX:RAKPROP and a 4.3% gain for Abu Dhabi Islamic Bank ADX:ADIB.Fitch Ratings affirmed the UAE's rating at "AA-" with a stable outlook on Tuesday, while S&P Global assigned the same rating last week.Saudi Arabia's benchmark stock index TADAWUL:TASI extended its gains to a fourth straight session, rising 0.9%, with most sectors in the green. Al Rajhi Bank TADAWUL:1120, the world's largest Islamic lender, gained 0.9% and oil major Saudi Aramco TADAWUL:2222 added 0.7%.Elsewhere, Saudi Arabia's trade surplus fell sharply in April, even as non-oil exports surged and imports rose, according to new government data issued Wednesday.Oil prices, a catalyst for the Gulf's financial markets, rose 0.4% as a larger-than-expected draw in U.S. crude stocks signalled firm demand.Brent ICEEUR:BRN1! was trading at $67.98 a barrel by 1230 GMTThe Qatari benchmark index QSE:GNRI was up for a consecutive fifth day, rising 0.4% with almost all its constituents posting gains.AlRayan Bank QSE:MARK advanced 1.4% and Industries Qatar QSE:IQCD added 0.5%. Qatar Investment Authority and Canadian asset manager Fiera Capital have launched a $200 million fund to boost foreign and local investment into the Gulf state's stock market, QIA said on Wednesday."Markets are benefiting from favorable market sentiment following the easing of geopolitical risks", said Joseph Dahrieh, managing principal at Tickmill."This has led to increased demand for stocks in the region and a greater focus on market fundamentals".SAUDI ARABIATADAWUL:TASI up 0.9% to 11,068KUWAIT(.BKP) ClosedQATARQSE:GNRI gains 0.4% to 10,685EGYPTEGX:EGX30 ClosedBAHRAINBAHRAIN:BHBX ClosedOMAN(.MSX30) down 0.2% to 4,5...