(Refiles to add dropped name in paragraph 6)
By Ateeq Shariff
April 3 (Reuters) - Most stock markets in the Gulf ended higher on Monday tracking a
rise in oil prices after a surprise announcement by OPEC+ to cut more production jolted markets.
The Organization of the Petroleum Exporting Countries and their allies including Russia
shook markets by announcing further production target cuts of about 1.16 million barrels per day
(bpd) on Sunday.
As a result, Goldman Sachs lowered its end-2023 production forecast for OPEC+ by 1.1 million
bpd and raised its Brent price forecasts to $95 and $100 a barrel for 2023 and 2024,
respectively.
Saudi Arabia's benchmark index advanced 1.6%, buoyed by a 5.9% jump in Riyad Bank and a 1.2% increase in Retal Urban Development Co .
The kingdom said it would cut output by 500,000 bpd. The Saudi energy ministry said the
country's voluntary reduction was a precautionary measure aimed at supporting the stability of
the oil market.
According to Ahmed Negm, head of market research MENA at XS.com, reopening of the Chinese
economy could also uplift Saudi oil exports despite some lower-than-expected data on Chinese
manufacturing.
Dubai's main share index finished 0.9% higher, with blue-chip developer Emaar
Properties climbing 3.2%.
In Abu Dhabi, the index was up 0.8%.
The Qatari index leapt 2%, ending three sessions of losses, with the Gulf's biggest
lender Qatar National Bank , which ended 3.7% higher.
Outside the Gulf, Egypt's blue-chip index gained 2.2%, as most of the stocks on the
index were in positive territory including Commercial International Bank , which was up
1.9%.
The Central Bank of Egypt (CBE) raised its overnight interest rates by 200 basis points on
Thursday following a meeting of its Monetary Policy Committee, saying it aimed to bring high
inflation into check.
The central bank's decision to raise interest rates could push the banking sector to the
upside as profit margin could improve, said Negm.
"The move could also contribute to securing international investors' interest as the
institution takes steps to rein in the high inflation."
SAUDI ARABIA rose 1.6% to 10,807
ABU DHABI up 0.8% to 9,501
DUBAI added 0.9% to 3,437
QATAR advanced 2% to 10,299
EGYPT leapt 2.2% to 17,057
BAHRAIN was flat at 1,889
OMAN down 0.4% to 4,792
KUWAIT lost 0.4% to 7,811
(Reporting by Ateeq Shariff in Bengaluru; Editing by Shailesh Kuber)
