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Bloomberg
Dubai shares climbed the most in the Gulf on after Opec+ agreed to a one-month extension of its record output cuts, underpinning recovery in oil prices.
The DFM General Index rose as much as 3.0%, trimming losses this year to 24%. Gauges in Saudi Arabia, Abu Dhabi, Kuwait and Oman gained between 0.2% and 1.6%.
Major oil producers decided at the weekend on a production-curb extension as well as a stricter approach to ensuring Opec members don’t break their pledges. Brent crude rose 19% last week in anticipation of the meeting, in the sixth consecutive weekly advance, with shares in developed and emerging markets also jumping.
“The recovery in oil prices and further extension of record production cuts by Opec+ until the end of July will have a positive impact on domestic markets,†said Iyad Abu Hweij, a managing partner at Allied Investment Partners PJSC in Dubai.
The main index in Saudi Arabia is still trading below the level of early March but the Tadawul All Share Index rises 0.7% as of 10:19 am in Riyadh, with Saudi Aramco up 0.8%.
While Al-Ahlia Cooperative Insurance gains 3.1% after signing an accord to merge with Gulf Union Cooperative Insurance, Kuwait’s Premier Market Index advances 0.6%.
On June 6, Egypt and the International Monetary Fund (IMF) reached a staff-level agreement on a $5.2 billion stand-by arrangement aimed to alleviate the economic impact of Covid-19.