Most stock markets in the Gulf ended higher on Monday after U.S. jobs data bolstered expectations that the Federal Reserve will not hike interest rates further.
Battered bond markets have recovered as a benign U.S. payrolls report and upbeat productivity numbers suggested the labour market was cooling enough to obviate the need for further rate increases from the Fed.
The U.S. central bank held its interest rate steady on Nov. 1, spurring a global market rally while triggering a drop in the U.S. dollar and Treasury yields.
Most Gulf Cooperation Council countries, including the UAE, peg their currencies to the U.S. dollar and follow the Fed’s policy moves closely.
Saudi Arabia’s benchmark index edged 0.1% higher, helped by a 6.7% jump in Etihad Atheeb Telecommunication Co.
Among other gainers, oil behemoth Saudi Aramco added 0.5%, ahead of the earnings announcement on Tuesday.
Oil prices - a catalyst for the Gulf’s financial markets - rose after top exporters Saudi Arabia and Russia reaffirmed their commitment to extra voluntary oil supply cuts until the end of the year.
Dubai’s main share index rose 0.7%, led by a 1.9% rise in blue-chip developer Emaar Properties and a 2.4% increase in Dubai Islamic Bank.
The Dubai bourse extended its rebound with sentiment improving after monetary policy expectations softened, said Muhannad Al-Teneiji, founder of Wealth Training Center and of Matrix for AI Applications.
“The market could continue to see improvements thanks to strong local fundamentals despite the remaining geopolitical tensions in the region.”
The Abu Dhabi index finished 0.4% higher.
In Qatar, the index advanced 1.6%, rising for a seventh straight session, with most of its constituents in positive territory, including Islamic lender Masraf Al Rayan, which gained 10%.
Outside the Gulf, Egypt’s blue-chip index eased 0.2%, ending two sessions of gains, hit by an 8.3% fall in Alexandria Mineral Oils Co.
======================================== SAUDI ARABIA added 0.1% to 10,949 ABU DHABI rose 0.4% to 9,552 DUBAI gained 0.7% to 3,957 QATAR was up 1.6% to 10,152 EGYPT lost 0.2% to 23,059 BAHRAIN added 0.3% to 1,921 OMAN up 0.8% to 4,561 KUWAIT eased 0.1% to 7,266 ========================================
Comments
Comments are closed for this article.