DUBAI: Most stock markets in the Gulf settled higher on Monday, building on gains from the previous session as global shares hovered around record highs on signs the Fed won’t rush to wind down its massive stimulus.
Gains in world stock markets helped lift investor confidence in the Gulf, said Daniel Takieddine, senior market analyst at FXPrimus.
Underpinning positive sentiment in global equity markets was Friday’s Jackson Hole speech by US Federal Reserve Chair Jerome Powell in which he said tapering of stimulus measures could begin this year, but added the central bank would remain cautious.
“Additional support is anticipated from the US economic growth in general,” said Takieddine.
Saudi Arabia’s benchmark index advanced 0.7%, with Saudi National Bank, the kingdom’s largest lender, and Saudi Telecom Company both gaining 1.9%.
In Abu Dhabi, the index added 0.4%, led by a 0.8% gain in Emirates Telecommunications Group and a 0.6% increase in conglomerate International Holding.
The Qatari index rose 0.2%, snapping three sessions of losses, helped by a 0.6% rise in petrochemical maker Industries Qatar.
Elsewhere, dairy company Baladna finished 0.6% higher, a day after it announced a new chief executive.
Dubai’s main share index, however, eased 0.1%, pressured by a 0.6% drop in sharia-compliant lender Dubai Islamic Bank.
The Dubai bourse will remain cautious ahead of OPEC’s meeting later this week, said Takieddine.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, collectively known as OPEC+, will meet on Wednesday to discuss the previously agreed increase of 400,000 barrels per day (bpd) for the next several months.
Outside the Gulf, Egypt’s blue-chip index ended 0.5% higher, with top lender Commercial International Bank rising 0.8%, while Cleopatra Hospital jumped over 5%.
On Sunday, the hospital operator reported a consolidated net profit of 90.6 million Egyptian pounds ($5.79 million) for the second quarter, up from 18.5 million a year earlier.
Among other gainers, investment bank EFG Hermes gained 1.7% after obtaining central bank approval to complete Arab Invesment Bank’s deal.
SAUDI ARABIA rose 0.7% to 11,255
ABU DHABI added 0.4% to 7,685
DUBAI down 0.1% to 2,900
QATAR gained 0.2% to 11,108
EGYPT up 0.5% to 11,163
BAHRAIN lost 0.5% to 1,657
OMAN up 0.1% to 3,970
KUWAIT rose 0.1% to 7,485.
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