DUBAI: Most Middle East stock markets edged higher on Sunday as investors bought up recently sold-off shares, supported by a rebound in global risk appetite after a softer US labor report fueled rate cut bets, while Saudi’s bourse approached a two-year low.
Saudi Arabia’s benchmark index fell 0.2 percent in a quiet session, extending a recent slide toward a two-year low, with most sectors closing in the red.
Index heavyweight Al Rajhi Bank, the world’s largest sharia-compliant lender, and ACWA Power lost 0.4 percent and 2.7 percent respectively.
Elsewhere, the state’s oil giant Aramco finished the session 0.1 percent higher, recovering from its lowest level seen in over five years in the previous session.
Crude - a key catalyst to Gulf economies - inched higher after a Ukrainian drone attack disrupted operations at Russia’s key western port, but gains were capped by concerns over soft US jobs data and rising inflation clouding the demand outlook.
Qatar’s benchmark index rose 0.4 percent, with financials leading the gains amid renewed investor confidence.
Qatar Islamic Bank climbed more than 1 percent.
Investors continue to keep a close watch on the US Federal Reserve as softer job data solidified expectations of a rate cut on Wednesday, with bets growing for additional cuts in October and December.
The Fed’s stance carries heavy clout in the Gulf, where most currencies are pegged to the US dollar, anchoring regional monetary policy.
Outside the Gulf, Egypt’s blue-chip index advanced 0.5 percent, building on gains from the past two sessions, supported by broad-based sectoral strength.
Orascom Construction jumped 4.7 percent after debuting its primary listing on Abu Dhabi’s main index on Thursday, while retaining its secondary listing on the Egyptian exchange.
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