Most stock markets in the Gulf ended higher on Tuesday as cooling U.S. inflation supported the view that the Federal Reserve could cut borrowing costs next year.
The market expectations grew after U.S. data released on Friday showed that by some key measures inflation was now at or below the central bank’s 2% target.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the decisions of the Federal Reserve, as most regional currencies are pegged to the dollar.
Saudi Arabia’s benchmark index gained 0.5%, led by a 3.5% jump in Etihad Atheeb Telecommunication and a 1.9% rise in Alinma Bank.
Dubai’s main share index added 0.3%, helped by a 1.3% increase in blue-chip developer Emaar Properties.
Most Gulf bourses gain on rate cut bets; Egypt dips
The Dubai stock market continued to see limited movement and could remain in an uncertain direction for the remaining trading sessions this year, said George Khoury, Global Head of Education and Research at CFI.
“However, the market could benefit from the expectations of improving monetary policy conditions in the coming months.”
In Abu Dhabi, the index reversed early losses to close 0.3% higher.
The Qatari benchmark inched 0.1% higher, rising for an eighth consecutive session, with Qatar Islamic Bank gaining 2%.
Outside the Gulf, Egypt’s blue-chip index dropped 1%, weighed down by a 1.5% fall in Commercial International Bank.
Separately, a drone was downed near the Egyptian Red Sea resort city of Dahab on Tuesday, in the second such incident in a month, Reuters reported citing two security sources.
======================================== SAUDI ARABIA rose 0.5% to 11,873 ABU DHABI rose 0.3% to 9,517 DUBAI gained 0.3% to 4,029 QATAR added 0.1% to 10,464 EGYPT fell 1% to 24,995 BAHRAIN was up 0.2% to 1,931 OMAN lost 0.4% to 4,542 KUWAIT dropped 0.8% to 7,373 ========================================
Comments
Comments are closed for this article.