Qatar Outperforms GCC Bourses on Oil Price Increase

Most stock markets in the GCC ended higher on 31 July, with the Qatari index outperforming the region as it drew support from rising oil prices and strong corporate earnings. Crude prices, a catalyst for the GCC’s financial markets, rose more than US$2 a barrel to settle at US$110.01 a barrel on Friday ahead of the coming week’s OPEC+ meeting. Sources say it will consider leaving output unchanged.

In Qatar, the index advanced 1.9%, with Qatar Islamic Bank rising 2.4% and Islamic lender Masraf Al Rayan closing 3.9% higher. Among other gainers, Mekdam Holding jumped 3.6%, after reporting a rise in first-half profit. Saudi Arabia’s benchmark index added 0.4%, led by a 3.6% gain in petrochemical firm Yansab. The kingdom’s gross domestic product rose by 11.8% in the second quarter compared with the same period in 2021, initial government estimates found on Sunday, as the world’s top oil exporter benefits from higher energy prices.

Growth was largely driven by a 23.1% increase in oil activities, the General Authority for Statistics said, while non-oil activities expanded 5.4%. Beyond the GCC, Egypt’s blue-chip index finished 1% higher, with Commercial International Bank climbing 1.2%.