Saudi Arabia’s stock market ended higher on Sunday in response to Friday’s rise in oil prices, although the gains were limited as investors awaited further interest rate insight from the US Federal Reserve.

Saudi Arabia’s benchmark index gained 0.4%, led by a 1.7% rise in petrochemical maker Saudi Basic Industries Corp and a 1.8% increase in Riyad Bank.

Oil prices - a key catalyst for the Gulf’s financial markets - rose about 1% on Friday following a slump in US crude production, which could exacerbate an anticipated supply tightness through the rest of this year.

UAE shares mixed on weak oil, US rate bets

In Qatar, the index edged 0.1% higher, helped by a 1.3% gain in Commercial Bank.

Investors will scrutinise a speech from Fed Chair Jerome Powell on Friday for clues about the interest rate outlook.

Oil and gas exporting countries in the Gulf tend to follow the Fed’s rate move, as most regional currencies are pegged to the US dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.

Outside the Gulf, Egypt’s blue-chip index added 0.4%, with tobacco monopoly Easter Company advancing 2.9%.

SAUDI ARABIA rose 0.4% to 11,501

QATAR added 0.1% to 10,577

EGYPT up 0.4% to 18,033

BAHRAIN was up 0.5% to 1,962

OMAN lost 0.3% to 4,773

KUWAIT eased 0.2% to 7,809