Gulf markets see positive growth thanks to increasing demand for oil.
Most major Gulf markets rebound on Thursday.
The Abu Dhabi stock market rebounded after investors absorbed Wednesday’s shock about inflation data in the U.S. The market could thus maintain strong increases in the coming days thanks to strong fundamentals.
The Abu Dhabi National Energy Company (TAQA.AD) added 14.7% to a similar surge in the previous session after Multiply Group (MULTIPLY.AD) acquired a 7.3% stake in the group in a deal amounting AED 10 billion ($2.72 billion). Multiply Group also advanced 14.6%.
Heavyweight real estate shares led wider gains in Dubai equities pushing the index (.DFMGI) 0.9% higher.
The UAE is set to gain from eased COVID curbs in China, which the Gulf country counts as its largest trade partner. Qatar's index (.QSI) surged 1.3%, boosted by a sharp increase in natural gas prices.
Saudi Arabia's benchmark index (.TASI) slipped 0.5% with banking and petrochemical stocks leading the losses as the market remained exposed to volatile energy markets while Egyptian blue chips (.EGX30) dropped 1 percent on their third consecutive day of declines as worries persisted about the global economic growth outlook.
Global oil demand growth will rebound strongly next year.
The International Energy Agency (IEA) said on Thursday that global oil demand growth will rebound strongly next year as economies recover from the coronavirus pandemic, but it warned that a new wave of infections could still derail the recovery.
In its monthly report, the IEA said oil demand in 2021 would rise by 5.7 million barrels per day (bpd), or 6%, to 97.4 million bpd, after falling by a record 8.8 million bpd this year to 91.7 million bpd.
That is an upward revision of 400,000 bpd from last month's report and marks a sharp acceleration from the agency's previous forecast for 2021 demand growth of just 1%.
Abu Dhabi market rebounds after investors absorb inflation data.
Abu Dhabi National Energy Company (TAQA.AD) adds 14.7%.
The Abu Dhabi stock market rebounded on Thursday after investors absorbed Wednesday’s shock about inflation data in the U.S. The Abu Dhabi National Energy Company (TAQA.AD) added 14.7% to a similar surge in the previous session after Multiply Group (MULTIPLY.AD) acquired a 7.3% stake in the group in a deal amounting AED 10 billion ($2.72 billion). Multiply Group also advanced 14.6%.
Multiply Group (MULTIPLY.AD) acquires 7.3% stake in the group.
The acquisition by Multiply Group is part of its strategy to invest in high-quality assets with long-term growth potential, and underscores its confidence in TAQA’s strong fundamentals and growth prospects, said CEO Ahmed Al Hashmi said in a statement on Wednesday night.
Dubai equities led by heavyweight real estate shares.
Dubai index (.DFMGI) up 0.9%.
The Dubai Financial Market General Index closed up 0.9% on Thursday, led by heavyweight real estate shares. Emaar Properties (EMAAR.DU) was the biggest gainer on the index, rising 2.4%, followed by developer Damac Properties (DAMAC.DU), which gained 1%.
UAE to gain from eased COVID curbs in China.
The UAE is set to benefit from eased coronavirus restrictions in China, which is the Gulf country's largest trade partner. The announcement came after Chinese President Xi Jinping said that Beijing would "significantly ease" entry requirements for foreigners holding valid visas or residence permits starting Friday.
This is positive news for the UAE as it looks to boost its economy through tourism and trade. The country has been working hard to attract more visitors and businesses in recent months, and this move by China will help it reach its goals.