The Saudi Arabian stock market rose in early trade on Thursday as the U.S. Federal Reserve Chair said he expects interest rate cuts later this year, while bourses in Dubai and Qatar were weighed down by stocks trading ex-dividend.

In remarks prepared for delivery to the House Financial Services Committee, Fed Chair Jerome Powell said that continued progress on inflation “is not assured,” though the central bank still expects to reduce its benchmark interest rate later this year.

Monetary policy in the six-member Gulf Cooperation Council is usually guided by Fed policy since most regional currencies are pegged to the U.S. dollar.

Saudi Arabia’s benchmark index gained 0.5%, led by a 6.4% jump in Avalon Pharma and a 0.5% increase in Al Rajhi Bank.

The Kingdom raised the official selling price (OSP) for its flagship Arab Light crude to Asia in April in line with expectations, an Aramco statement showed on Wednesday.

Gulf markets mixed ahead of key Fed Powell testimony

However, oil giant Saudi Aramco was down 0.4% on the day.

Crude prices - a key catalyst for the Gulf’s financial markets - eased 0.6% to $82.51.

In Abu Dhabi, the benchmark index added 0.1%.

Dubai’s main share index dropped 0.6%, dragged down by a 7.1% slide in Sharia-compliant lender Dubai Islamic Bank as the stock went ex-dividend.

The Qatari benchmark declined 1%, while petrochemical maker Industries Qatar retreated 6.2% and telecoms firm Ooredoo fell more than 5% as the duo were trading ex-dividend.