DUBAI: Most stock markets in the Gulf ended higher on Monday, helped by rising oil prices and positive market sentiment amid growing expectations of additional Federal Reserve rate cuts.
Oil prices - a catalyst for the Gulf’s financial markets - rose after the US intercepted an oil tanker in international waters off the coast of Venezuela and tensions in Russia’s war against Ukraine remained high, both of which raised fears of supply disruptions.
Saudi Arabia’s benchmark index gained 0.7 percent, led by a 1.6 percent rise in Al Rajhi Bank .
Saudi Arabian Mining Company (Ma’aden) jumped 5.3 percent after it secured Ministry of Energy’s approval last week for feedstock allocation to launch its fourth phosphate project.
Dubai’s main share index closed 0.7 percent higher, with top lender Emirates NBD adding support.
In Abu Dhabi, the index advanced 0.7 percent.
Markets are currently pricing in two US rate cuts for next year despite the Fed signalling caution.
Monetary policy shifts in the US have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
The Qatari index was up 0.8 percent, supported by a 1.5 percent gain in the Gulf’s biggest lender Qatar National Bank.
Outside the Gulf, Egypt’s blue-chip index dropped 0.6 percent, hit by a 2.4 percent fall in Commercial International Bank.
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