Saudi Arabia’s stock market ended higher on Sunday, snapping a four-session losing streak, after US economic data showed an improving inflation landscape, although the Egyptian bourse eased following a hike in domestic prices.
US prices rose moderately in June, underscoring an improving inflation environment that potentially positions the Federal Reserve to begin cutting interest rates in September.
The Fed has maintained its benchmark overnight interest rate in the current 5.25%-5.50% range since last July. It has hiked its policy rate by 525 basis points since 2022.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed’s decisions as most regional currencies are pegged to the US dollar.
UAE markets hit 4-month high on strong corporate earnings
Saudi Arabia’s benchmark index advanced 1.2%, with aluminium products manufacturer Al Taiseer Group rising 3.5%, and Al Rajhi Bank increasing 2.8%.
In Qatar, the index added 0.4%, with petrochemical maker Industries Qatar gaining 0.8%.
Outside the Gulf, Egypt’s blue-chip index - which traded after a session’s break - lost 0.2%, hit by a 1.5% fall in Talaat Mostafa Group.
Egypt raised the prices of a wide range of fuel products on Thursday, the official gazette said, four days before the International Monetary Fund (IMF) conducts a third review of its expanded $8 billion loan programme for the country.
SAUDI ARABIA rose 1.2% to 12,175
QATAR gained 0.4% to 10,136
EGYPT fell 0.2% to 29,036
BAHRAIN eased 0.3% to 1,970
OMAN lost 0.6% to 4,627
KUWAIT added 0.4% to 7,830
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