DUBAI: Gulf stock markets were largely steady on Monday after regional central banks lowered interest rates in tandem with the US Federal Reserve, though uncertainty over the Fed’s future policy direction continued to temper sentiment.
Qatar and Egypt markets, however, saw extended losses, driven by profit-taking.
The Fed trimmed its benchmark rate by a quarter percentage point on Wednesday in response to softening labour market, but signalled a measured approach to further monetary policy easing, leaving investors in doubt about the pace of future moves.
Subsequently, the central banks of Saudi Arabia, the United Arab Emirates and Qatar each cut rates by 25 basis points.
Saudi Arabia’s benchmark index rose 0.6 percent, for the fifth consecutive session, with buying concentrated in information technology and financial shares.
Saudi National Bank jumped more than 1.5 percent, while Saudi Telecom advanced nearly 1 percent.
Oil behemoth Saudi Aramco added 0.1 percent, marking its seventh straight day of gains.
Dubai’s main share index finished 0.1 percent higher in a quiet session, helped by gains in utilities and real estate.
Emaar Properties advanced 0.7 percent, consolidating two days of gains after the developer scrapped plans to sell any stake in its Indian subsidiary and said it is exploring potential joint ventures with major Indian companies, including Adani Group. Dubai Electricity and Water Authority advanced 1.5 percent. Abu Dhabi’s index also edged up 0.1 percent, extending two sessions of gains, lifted by a 1.7 percent increase in ADNOC Drilling.
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