Most stock markets in the Gulf were up on Monday, after cooler-than-expected US inflation data revived hopes for further policy easing by the Federal Reserve.
Following the November inflation data in the world’s largest economy, traders raised their rate cut bets for 2025, now expecting a cut in March and another by October.
The Fed’s decisions have a significant impact on the Gulf region’s monetary policy, as most currencies there are pegged to the US dollar.
Dubai’s benchmark stock index extended its rally to a third straight session, rising 0.4%, pushed up by industry, real estate and finance stocks.
Tolls operator Salik Company gained 1.4% and Emirates NBD, the Dubai’s largest lender, added 1%. Shares of Emaar Properties were up for a third day, rising 0.8% to their highest in more than 18 years.
The blue-chip developer said last Monday it had planned to declare dividends at 100% of share capital for 2024 and the next few years, amounting to 8.80 billion dirhams ($2.4 billion).
Saudi Arabia’s benchmark stock index rose 0.3%, aided by gains in finance, utilities and energy sectors.
The insurer Medgulf climbed 3% after it inked a contract to provide health insurance services to the state-owned Saudi Electricity.
Most Gulf markets muted as concern lingers over fewer Fed rate cuts
Among other gainers, Knowledge Economic City Company gained 1.3% after the developer said it has signed an agreement with Sidra Capital and Raseel Properties to establish a 1.04 billion riyals ($276.75 million)investment fund.
The Abu Dhabi benchmark index was up 0.2%, supported by a 2% gain in Abu Dhabi National Energy Company.
Utilities and energy firm TAQA said on Friday that its 43%-owned Masdar had completed the acquisition Of Saeta Yield for an implied enterprise value of EUR 1.2 billion ($1.25 billion).
The Qatari benchmark index eased 0.1% with Qatar Islamic Bank shedding 0.8%. Industries Qatar gained 0.6%.
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