Petrochemicals lifted Saudi Arabia’s bourse in early trade on Tuesday as oil prices strengthened, while property developers extended gains in Egypt.
Brent crude traded around $55.50 per barrel, posting gains for a third session in a row.
The main Saudi index rose 1.0 percent as Saudi Basic Industries (SABIC) climbed 1.9 per cent and its affiliate Saudi Kayan Petrochemical Co surged 4.4 per cent.
“The profitability of the MENA petrochemical producers, which benefit from advantageous feedstock pricing, will continue to be highly correlated to oil prices,’’ NBK Capital wrote in a report.
The brokerage said Kayan was most sensitive to a potential increase oil prices: an average price of $75 per barrel would lift its earnings per share by a quarter compared with a $65-per-barrel scenario.
Property stocks helped Egypt's bourse rise 1.0 per cent. Talaat Moustafa Group jumped 3.4 per cent and Medinet Nasr Housing and Development added 2.5 per cent.
Investors are betting that the pound’s gradual depreciation will make real estate more attractive for Egyptians seeking to hedge their savings.
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