Buyers return to Mideast markets as oil nears $35

Stocks in the Middle East nudged higher on Tuesday as strong trading volumes suggested that buyers were returning to the markets.

Brent crude jumped 5.1 percent overnight to $34.69 a barrel, but fell again to $34.17 on Tuesday. Oil movements suggest that prices have already bottomed out and the market may improve on the willingness of major producers to cooperate.

In Saudi Arabia, the TASI benchmark edged up 0.3 percent near the 6,000 level towards the end of the session. Most sectors were in the green, with the exception of petrochemicals and cement. Major petchem producer SABIC fell 0.92 percent to SAR 72.25. The company, along with 11 other listed firms and banks, was hit with a downgrade by S&P. Meanwhile, the cement sector continues to suffer from low prices and an oversupplied market.

Egypt’s main index, EGX30, edged up 0.54 percent to 6,119 points towards end of trading. Beltone Financial was a top gainer for the second consecutive session, up 9.99 percent just above EGP 9.

The Abu Dhabi Securities Exchange (ADX) finished 0.38 higher at 4,314, led by consumer staples and investment and financial services. Agthia Group climbed 3.5 percent to AED 7.40, while Al Watha National Insurance jumped 7.41 percent to AED 4.35.

Dubai Financial Market (DFM) finished in the green, as it edged 0.68 percent higher to 3,192 points by close. Blue chip stock Drake & Scull International was the top gainer, with a surge of 7.18 percent to AED 0.403.

Qatar’s QE Index finished up 0.90 percent to 10,003 points, with all sectors— excluding insurance— ending the day in green. Kuwait’s SE Price Index edged up 0.42 percent to 5,166 points.

Write to Reem Abdellatif at reem.a@argaam.com and

Matthew Watson at matthew.w@argaamplus.com