Most stock markets in the Gulf ended higher on Wednesday, building on gains led by interest rate cuts last week enacted by regional central banks, although geopolitical tensions weighed on investor sentiment.
Last week, most Gulf central banks cut their key interest rates after the U.S. Federal Reserve decreased rates by half a percentage point citing “greater confidence” on inflation.
The Fed projected a further half-point rate cut by the year-end, a full point next year and a half-point trim in 2026.
Monetary policy in the Gulf Cooperation Council often aligns with the Fed’s decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia’s benchmark index gained 0.6%, with aluminium products manufacturer Al Taiseer Group rising 3.2%.
Among other gainers, oil giant Saudi Aramco was up 0.7%.
Dubai’s main share index advanced 0.6%, led by a 2.2% rise in top lender Emirates NBD.
Most Gulf markets in red on rising tensions in the region
In Abu Dhabi, the index closed 0.6% higher, driven by a 0.5% rise in telecoms group e& after the EU Commission approved the firm’s bid for parts of Czech telecom company PPF under certain conditions.
The deal will see e& acquire the sole control of PPF Telecom excluding its local business in the Czech Republic.
The Qatari benchmark concluded 0.5% higher, with Qatar National Bank gaining 1.3%.
An Israeli airstrike on Beirut killed a senior Hezbollah commander on Tuesday as cross-border rocket attacks by both sides increased fears of a full-fledged war in the Middle East.
Outside the Gulf, Egypt’s blue-chip index rose 1.2% higher, buoyed by a 2.5% increase in Talaat Mostafa Holding.
--------------------------------------- SAUDI ARABIA rose 0.6% to 12,344 ABU DHABI up 0.6% to 9,516 DUBAI gained 0.6% to 4,489 QATAR added 0.5% to 10,543 EGYPT up 1.2% to 31,251 BAHRAIN eased 0.3% to 2,019 OMAN was up 0.2% to 4,727 KUWAIT added 0.6% to 7,794 ---------------------------------------
Comments
Comments are closed.