Most major stock markets in the Gulf edged higher in early trade on Monday with cooler-than-expected US inflation data supporting the view that the Federal Reserve could cut borrowing costs in the new year.
Trading volumes were mostly low because of the absence of many foreign investors for Christmas and New Year holidays.
The Commerce Department report showed US prices fell in November for the first time in more than 3-1/2 years, pushing the annual increase in inflation further below 3%.
Most Gulf bourses gain on rate cut bets; Egypt dips
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the decisions of the US Federal Reserve, as most regional currencies are pegged to the dollar.
Saudi Arabia’s benchmark index rose 0.2%, supported by a 1.2% gain in auto rental firm Lumi and a 0.6% increase in Al Rajhi Bank.
Dubai’s main share index eased 0.3%, hit by a 0.9% decline in top lender Emirates NBD and a 0.5% decrease in blue-chip developer Emaar Properties.
In Abu Dhabi, the index added 0.1%.
The Qatari benchmark rose 0.4%, on course to gain for seventh session, led by a 2% rise in sharia-compliant lender Masraf Al Rayan.
SAUDI ARABIA rose 1.1% to 9,473
ABU DHABI fell 1.8% to 5,583
DUBAI down 0.1% to 2,539
QATAR gained 0.7% to 10,118
EGYPT lost 1.1% to 11,337
BAHRAIN eased 0.7% to 1,467
OMAN rose 0.8% to 3,697
KUWAIT added 0.6% to 6,269
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