Gulf markets in black after central banks cut rates

DUBAI: Most stock markets in the Gulf ended higher on Thursday, after most central banks in the region cut their key interest rates following a larger-than-usual policy easing by the US Federal Reserve.

The Fed cut its benchmark rate by 50 basis points (bps) on Wednesday, with policymakers seeing another half a percentage point fall by the end of this year.

Saudi Arabia’s benchmark index rose 1.3%, boosted by a 2% jump in Al Rajhi Bank.

The kingdom, the region’s biggest economy, cut its repurchase agreement (Repo) rate and reverse repo rate by 50 bps each to 5.5% and 5%, respectively, according to a central bank statement.

Elsewhere, oil behemoth Saudi Aramco was up 1.1%.

Oil prices - a catalyst for the Gulf’s financial markets - rose after the Fed’s rate cut, but Brent was still hovering around its lowest levels of the year, below $75, on expectations of weaker global demand.