Most stock markets in the Gulf ended higher on Sunday, extending gains from the previous session, helped by encouraging US economic data that reinforced bets that the Federal Reserve would start cutting interest rates next month.
A batch of US data this week showed inflation was moderating and retail spending was robust.
The data has helped the market narrative move away from recession concerns, sparked by a weak US jobs report in early August, to confidence the economy can keep growing.
Gulf markets rise amid global stock rally
With central bankers from around the globe set to gather in Jackson Hole, Wyoming, this week, traders expect the Fed to lower borrowing costs from a 23-year high next month but have reduced their bets on an emergency 50-basis-point cut to 25%, down from 55% a week ago, the CME FedWatch tool showed.
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.
Saudi Arabia’s benchmark index gained 0.6%, with aluminium products manufacturer Al Taiseer Group advancing 6.2%.
In Qatar, the index added 0.1%, helped by a 0.9% rise in petrochemical maker Industries Qatar.
Outside the Gulf, Egypt’s blue-chip index dropped 0.6%, dragged down by a 1.5% fall in Talaat Mostafa Group.
SAUDI ARABIA rose 0.6% to 11,981
QATAR added 0.1% to 10,135
EGYPT lost 0.6% to 29,460
BAHRAIN gained 0.3% to 1,943
OMAN was flat at 4,691
KUWAIT was up 0.4% to 7,765
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