Germany and Qatar struck a deal on Friday to strengthen energy cooperation.
After plunging well over 2% on Thursday, Qatar’s index (.QSI) gained 0.1%, with financials and energy sectors providing some respite.
Masraf al Rayan (MARK.QA), an Islamic bank, gained 1.7%, alongside Qatar Gas Transport Nakilat (QGTS.QA), which climbed up 2.7% on the market.
Qatar is not a member of the Organization of Petroleum Exporting Countries (OPEC), which offers it flexibility in selling oil on global markets. However, it is one of the world’s leading suppliers of clean energy, which is in high demand.
Saudi Arabia’s stock market, on the other hand, declined for the second time in a row on Sunday, weighed down by lower banking and petrochemical stocks.
This comes as Germany and Qatar struck a deal on Friday to strengthen energy cooperation, with an emphasis on hydrogen and LNG exports, as Europe’s largest economy seeks alternative sources in the wake of Russia’s invasion of Ukraine.
Qatar’s Minister of State for Energy Affairs Saad Sherida Al-Kaabi and Germany’s Economy Minister Robert Habeck signed the agreement. It took place during Qatar’s Amir Sheikh Tamim bin Hamad Al Thani’s European tour, which included a stop in Germany.
According to Reuters, the current announcement focuses on the sale of liquefied natural gas (LNG) and hydrogen. It also implies the formation of a Qatari-German working group that will meet on a regular basis to promote LNG and hydrogen trade.
Italy, the United Kingdom, and France are among other European countries that have turned to Qatar for LNG. Europe, which was already experiencing an energy crisis, received 40% of its gas from Moscow, with about a third of the cargoes coming through Ukraine.
What is the stock market and how does it work?
Stocks, also known as equities or publicly traded corporations, are ownership interests in companies that choose to make shares of the entity available to the general public.
A share of stock indicates a company’s ownership interest. For example, if you own stocks in a company, you and gain a piece of the company’s success. In other words, rather than being owned by a single person or a small group of people, some businesses choose to become public. This means that anyone can buy shares of the company’s stock and become a part owner.
Supply and demand simply a dictate the stock prices on exchanges.
There will always be a maximum price someone is willing to pay for a stock and a minimum price someone is willing to sell shares . These are referred to as the bid and ask prices. Consider the stock market to be an auction. Bidding is always going on for shares that other investors are eager to sell.
When a stock is in high demand, investors will buy shares faster than sellers desire to sell them. This may cause the price to rise. On the other hand, if more people sell than acquire a stock, the market price would fall.