Most stock markets in the Gulf ended higher on Sunday after a slump in US retail sales prompted hopes that the Federal Reserve will soon start cutting rates.
Retail sales dipped 0.8% last month, the biggest drop since March 2023, the US Commerce Department’s Census Bureau said. Economists polled by Reuters had forecast a 0.1% decline.
Most Gulf Cooperation Council countries, including the United Arab Emirates (UAE), peg their currencies to the US dollar and follow the Fed’s policy moves closely.
Saudi Arabia’s benchmark index added 0.1%, closing at its highest since Aug. 2022, helped by a 5.7% jump in National Shipping Co for Saudi Arabia.
UAE markets gain on rate cut bets
Elsewhere, National Agricultural Development Company surged 10% - the daily maximum limit - following a sharp rise in annual net profit.
The Qatari benchmark gained 0.6%, with Qatar National Bank, the Gulf’s biggest lender, rising 2.4%, while telecoms firm Ooredoo finished 2.9% higher.
Oil prices, another catalyst for Gulf markets, settled higher on Friday as geopolitical tensions in the Middle East more than offset a forecast from the International Energy Agency for slowing demand.
Outside the Gulf, Egypt’s blue-chip index added 0.7%, with investment bank EFG Hermes rising 2.6%.
SAUDI ARABIA rose 0.1% to 12,502
QATAR gained 0.6% to 10,211
EGYPT added 0.7% to 29,125
BAHRAIN eased 0.8% to 2,052
OMAN up 0.1% to 4,637
KUWAIT lost 0.5% to 8,000
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