Gulf Stock Markets Rose Following Oil Price Surge

Gulf Stock Markets Rose Following Oil Price Surge
A trader stands in front of a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh June 15, 2015. The chief executive of Saudi Arabia’s stock exchange said on Monday he expected a flurry of licenses allowing the first foreign investors to buy shares there in coming weeks. To match Interview SAUDI-STOCKEXCHANGE/ REUTERS/Faisal Al Nasser – RTX1GK2O

Gulf countries’ stock markets rose sharply after oil prices surged at the end of January, reported Reuters. Egypt’s stock index also rose by as much as 2.1% in response to the firm tone of global equity markets.

Foreign investors have been pulling money out of the Egyptian market for several weeks, partly because many analysts believe that currency devaluation is inevitable at some point, given Egypt’s current account deficit and persistently low foreign reserves.

Oil prices rebounded to almost $36 a barrel at the end of January, from a 12-year low close to $27, on hopes that OPEC and non-OPEC producers might eventually agree on a deal restraining oil production to boost prices.

 

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