Stock markets in the Gulf put in a mixed performance on Sunday amid rising oil prices and receding hopes of rapid interest rate cuts by the US Federal Reserve after a series of inflation readings.
The oil price - a catalyst for the Gulf’s financial markets- settled higher on Friday, drawing support from tensions in the Middle East.
The Qatari benchmark index was up after a two straight sessions of losses and ended 0.3% higher with all sectors in positive territory.
Qatar Islamic Bank and Masraf Al Rayan gained 0.9% and 0.7%, respectively, while Industries Qatar added 0.3%.
Major Gulf markets edge higher on corporate earnings
Saudi Arabia’s benchmark index was down for a fifth straight session and shed 0.2%, with almost all sectors in the red. ACWA Power fell 5.7% and Middle East Pharmaceutical Industries, slid 2.1%.
However, Arab National Bank advanced 1.9% after the lender reported a 15.7% rise in quarterly net profit.
US monthly inflation rose moderately in March, but stubbornly higher costs for housing and utilities suggested the Federal Reserve could keep interest rates elevated for a while.
Most Gulf currencies are pegged to the dollar, and any US monetary policy changes are usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Outside the Gulf, Egypt’s blue-chip index extended its decline to a fourth straight session and lost 4.9% to 24,640, its lowest level in four months.
Talaat Mostafa Group and Egypt Kuwait Holding slumped 9.7% and 6.9% respectively, while Commercial International Bank dropped 4.8%.
Meanwhile, Egypt has committed to addressing its recourse to central bank overdraft facilities and off-budget public sector activity, practices that have contributed to pressure on the currency and the exchange rate, the IMF said on Friday.
SAUDI ARABIA down 0.2% to 12,232
KUWAIT lost 0.1% to 7,654
QATAR rose 0.3% to 9,667
EGYPT dropped 4.9% to 24,640
BAHRAIN added 0.4% to 2,024
OMAN gained 1% to 4,761
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