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Bloomberg
Most Middle Eastern equity markets advanced on Sunday, with major gauges heading for the best monthly performance since April amid growing optimism regarding a coronavirus vaccine and higher oil prices.
The main indexes in Dubai, Abu Dhabi and Saudi Arabia were all headed to the best monthly advance in four months, with Dubai’s DFM General Index leading the increase at 11%. Kuwait’s gauge was poised for the biggest
increase since March 2019.
Gauges in the region are catching up with gains for emerging-market stocks and currencies last week amid progress towards a vaccine and after the US and China said they remained committed to the phase-one trade deal. Crude prices also climbed as US Gulf Coast refineries began restarting after Hurricane Laura.
“Going forward, equity markets are likely to continue their upward trend, encouraged by the liquidity packages being rolled out by central banks and hopes of potential vaccines to treat Covid-19,†said Iyad Abu Hweij, the managing partner at Allied Investment Partners PJSC in Dubai.
If Middle Eastern markets hold on to gains for the month until the end of Monday’s session, they will sustain a recovery after having lagged behind other developing markets in the previous two months. The advance this month was helped by Brent crude trading near the highest level since early March.
Saudi Arabia’s Tadawul All Share Index advances 0.2% as of 10:38 am local time as daily new coronavirus cases dropped below 1,000 for the first time since April.
Telecom operator Zain Saudi also gains as much as 1.4% after it said it plans a SAR4.5 billion rights issue.
Taqa rises as much as 2.7% in Abu Dhabi after the Netherlands’ Ministry of Economic
Affairs and Climate granted its gas operator permission to expand Bergermeer gas storage capacity.