Gulf stocks rise as investors await OPEC meet outcome

Bloomberg

Most Gulf stocks rose as investors weighed the prospect of a deal
between oil producers to cut supply, potentially shoring up prices of
the region’s biggest export. Saudi Arabia’s Tadawul All Share Index was among the biggest gainers, climbing a fourth day. Dubai’s DFM General Index, Kuwait’s SE Price Index and Abu Dhabi’s ADX General Index also advanced.
While Brent crude slumped on Friday after planned talks between producers inside and outside the Organization of Petroleum Exporting Countries were canceled, the group gathers Nov. 30 in Vienna in a bid to agree a deal to drag the market out of a 2 1/2-year downturn. The six-nation Gulf Cooperation Council is home to about 30 percent of the world’s proven crude reserves and governments depend on energy income for the bulk of spending.
“All eyes are on OPEC and markets will move in tandem with the news that we hear from them,” said Joice Mathew, the head of equity research for the Gulf region at United Securities in Muscat, Oman. “It’s not very positive news that we hear at the start of the week, but in the case of OPEC anything can happen.”

‘VOLATILITY’
The Tadawul rose 0.7 percent in Riyadh, with Jabal Omar Development Co. contributing most to the gain. About 70 percent of its 176 members rose.
The ADX General Index increased 0.6 percent. The DFM General Index added 0.4 percent and Kuwait’s SE Price Index rose 0.3 percent. Bahrain’s BB All Share Index gained 0.9 percent and Qatar’s QE Index increased 0.2 percent, while Oman’s MSM 30 Index was little changed.
“We should see markets trading amid increased volatility this week on the back of the OPEC event,” said Mohammed Al-Alwan, the director for capital markets investments at Alrajhi United Investment Holding in Riyadh.
Egypt’s EGX 30 Index fell 1.8 percent to 11,145.95 in Cairo, with Commercial International Bank Egypt SAE being the biggest contributor to losses. Since Egypt floated its currency on Nov. 3, the value of daily stock trading has jumped three-fold to about 1.8 billion Egyptian pounds ($97 million) on average compared with the preceding 12 months. Foreign investors have been net buyers of Egyptian shares every day since Nov. 3, adding the equivalent of $203 million to their holdings, compared to a net outflow of $88 million from Dubai Financial Market equities. In Israel, the TA-25 gained 0.6 percent, the highest level in two months, with pharmaceutical company OPKO Health Inc. adding most to gains. The TA-Oil & Gas Index climbed 1.5 percent, advancing for the seventh day. It’s poised for the longest winning streak since April 2014. Read: Delek Taps JPMorgan, HSBC for $1.75 Billion to Finance Leviathan.