Abu Dhabi’s stock market rebounded on Tuesday, ending a nine-day losing streak, while the Saudi index extended losses for a second session as the uncertainty remained among investors ahead of the U.S. Federal Reserve’s policy meeting on Wednesday.
In Abu Dhabi, the index gained 0.9%, led by a 4.2% jump in telecoms firm e&.
The market found some support from the oil markets where prices continue to climb overall, said Daniel Takieddine, CEO MENA at BDSwiss.
“At the same time, natural gas prices remained volatile with no clear direction.”
Oil prices, a key catalyst for the Gulf’s financial markets, were up, with Brent crude rising to $122.42 per barrel amid tight global supply.
In Qatar, the index edged up 0.1%, helped by a 2.2% rise in the Gulf’s biggest lender, Qatar National Bank.
Dubai’s benchmark index added 0.3%, with top lender Emirates NBD gaining 1.5%.
The United Arab Emirates’ federal government aims to increase spending by 1.23 billion dirhams ($335 million) in the 2022 budget, the Federal National Council said on Twitter on Tuesday.
Gulf bourses in red on inflation, fuel demand concerns
Saudi Arabia’s benchmark index lost 0.3% with Al Rajhi Bank falling 1.2% and oil giant Saudi Aramco down 0.9%.
U.S. President Joe Biden will discuss energy production as part of his trip this month to the Middle East, including to Saudi Arabia, White House’s National Security Council spokesman John Kirby said on Tuesday.
Outside the Gulf, Egypt’s blue-chip index eased 0.3%, with Talaat Mostafa Group Holding declining 3.3%.
Higher oil and wheat prices will cost the Egyptian budget over $10 billion, Finance Minister Mohamed Maiit told CNBC Arabia on Sunday.
Egypt has been suffering from a shortage of foreign currency since the coronavirus pandemic chased away many tourists, international portfolio investors withdrew funds and the Ukrainian crisis pushed up imported commodity prices.
SAUDI ARABIA fell 0.3% to 12,021
ABU DHABI up 0.9% to 9,547
DUBAI rose 0.3% to 3,298
QATAR gained 0.1% to 12,731
EGYPT lost 0.3% to 9,981
BAHRAIN dropped 0.5% to 1,843
OMAN was flat at 4,121
KUWAIT down 0.5% to 8,184
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