Most major stock markets in the Gulf rose in early trade on Wednesday ahead of more corporate earnings, with Dubai and Abu Dhabi bourses rising on the back of financial shares.
Dubai’s main share index gained 0.6%, led by a 3.3% leap in sharia-compliant lender Dubai Islamic Bank.
In Abu Dhabi, the index added 0.4%, with the country’s biggest lender First Abu Dhabi Bank jumping 2.5% and Abu Dhabi Commercial Bank (ADCB) increasing 2.6%, building on a 7.6% surge in the previous session to a hit record high.
ADCB - the third-largest bank by assets in the United Arab Emirates - on Monday posted second-quarter net profit of 2.57 billion dirham ($699.74 million), a rise of 10.7% from the same period a year earlier.
Saudi Arabia’s benchmark index edged 0.2% higher, on course to snap six consecutive sessions of losses, helped by a 0.3% rise at Al Rajhi Bank.
Most Gulf markets gain ahead of key US data, trade talks
Oil prices, a catalyst for the Gulf’s financial markets, rose, boosted by expectations of firm summer demand in theworld’s two largest consumers, the United States and China. However, gains were capped by analysts’ caution about the broader economy.
In Qatar, the index was flat.
Meanwhile, investors sought more details on President Donald Trump’s trade policy, while assessing data showing an increase in U.S. consumer prices last month.
Following the data, Trump said that consumer prices were low and the Fed should bring down interest rates now.
The Fed’s actions have a significant impact on the Gulf region’s monetary policy, as most regional currencies are pegged to the U.S. dollar.
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