Saudi bourse extends gains as OPEC+ mulls output cuts

A trader walks out of Bahrain Bourse after Joe Biden won the U.S. presidency, in Manama, Bahrain, November 8, 2020. REUTERS/Hamad I Mohammed/Files

Oct 5 (Reuters) - Saudi Arabia stocks advanced on Wednesday for a seventh straight session, buoyed by prospects of OPEC+ producers delivering a big cut in crude oil output.

The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, together called OPEC+, will meet in Vienna to discuss output cuts of up to 2 million barrels per day (bpd), Reuters reported on Wednesday, citing an OPEC source. Saudi Arabia is a part of OPEC.

JP Morgan said OPEC+ oil-producing countries would cut production with or without an agreement at their meeting later in the day, with prices likely to retest $100 a barrel in the fourth quarter due to a supply deficit.

Oil prices, a key factor for the Gulf's financial markets, were little changed ahead of the meeting of OPEC+ producers after gaining more than 3% in the previous session.

Saudi Arabia's benchmark stock index (.TASI) advanced 0.8%, boosted by a 1% rise in Al Rajhi Bank (1120.SE).

Dubai's main share index (.DFMGI) added 0.1%, helped by a 0.8% increase in blue-chip developer Emaar Properties (EMAR.DU).

The United Arab Emirates' non-oil private sector maintained brisk activity growth in September, albeit at a slightly slower pace than August, as new business drove gains in output and employment, a survey showed. read more

In Abu Dhabi, the benchmark stock index (.FTFADGI) was up 0.1%. The Qatari index (.QSI) rose 0.5%, extending gains from the previous session, when the index saw its biggest intraday gain in more than four years.

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was up 2.3%, as investors grew hopeful future global interest rate rises might become less aggressive amid early signs previous policy tightening was working to temper price pressures in some major world economies.

Reporting by Ateeq Shariff in Bengaluru; Editing by Subhranshu Sahu

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