Peace hopes drive Gulf markets: Stock prices soar.
- Hopes for a Ceasefire in Lebanon Boost Gulf Markets
- Oil prices rise due to increasing US demand and inventory declines.
Eulerpool News·
The stock markets of the Gulf states showed an upward trend on Thursday, driven by budding hopes for a possible ceasefire between Israel and Hezbollah. The Lebanese Prime Minister expressed on Wednesday the expectation that a corresponding agreement could be announced within a few days. A draft of a 60-day ceasefire was already published by an Israeli broadcaster.
This endeavor for a ceasefire in Lebanon parallels similar diplomatic efforts to end the fighting in the Gaza Strip. The main index in Saudi Arabia increased by 0.2%, led by ACWA Power Company, whose shares rose by 3.9%. The aluminum manufacturer Al Taiseer Group also recorded a slight increase of 0.2%.
In Dubai, the main stock index climbed by 0.1%, fueled by a 2.4% gain in the Emirates Central Cooling Systems Corporation. The positive market sentiment was further buoyed by the announcement of a new large order from the Saudi Arabian airline Riyadh Air, which has ordered 60 Airbus A321 series aircraft.
The Qatari main index rose by 0.4%, driven by a 1.9% increase in Industries Qatar. Oil prices, a significant driver of financial markets in the Gulf, continued their upward trend, supported by the unexpected increase in US fuel demand and a surprising decline in crude oil and gasoline inventories.
In Abu Dhabi, however, the stock index fell by 0.2%, while positive signals from Chinese production indicated a recovery in the industrial economy.
EULERPOOL DATA & ANALYTICS