Saudi Arabia shares boosted by Opec+, stocks rally in Dubai

Bloomberg

Saudi stocks rallied on Sunday, putting them on track to be the Middle East’s best performers in 2020, a day after the Opec+ group pledged a more hands-on approach to the oil market. Equities in Dubai were among the region’s best performers amid optimism over a rebound in tourism.
The main index in Riyadh gained 0.3% as of 10:20 am local time, closing in on its highest level since July 2019. Gauges in Dubai, Abu Dhabi, Kuwait and Bahrain rise between 0.2% and 1.1%. The volume of shares traded in all markets was below the 30-day average ahead of the holiday season.
Positive sentiment prevailed as Opec+ said it will react faster to changes and take a more hands-on approach with the oil market by starting regular monthly meetings. More frequent conferences mean policy makers in oil-producing countries will drive the market, not speculators, Saudi Energy Minister Prince
Abdulaziz bin Salman said.
The Tadawul All Share Index is up just over 4% in 2020, more than any other in the Gulf, despite a slump in price of crude since the start of the pandemic. Saudi shares have been recovering amid optimism that vaccine rollouts will provide a long-awaited boost to oil demand.
Loose monetary policy in Saudi Arabia, high liquidity among investors and companies taking steps to save cash to retain investors’ confidence helped boost the biggest stock market in the Middle East in 2020, according to Joice Mathew, head of equity research at United
Securities in Muscat.
“After initial hiccups and uncertainties related to low oil prices in April, investor sentiment was boosted in an unprecedented manner,” Mathew said. He added that a weaker dollar, stronger oil price and vaccine developments are “an excellent recipe for continuation of the investor confidence and momentum.”
The MSCI Emerging Markets Index rise 0.9% last week, extending the winning streak to seven weeks, the longest since January.