Saudi Arabia’s stock market rose in early trade on Tuesday hitting its highest in nearly nine months on bets for an imminent end to US interest rate hikes, while the Qatari bourse eased.
cooler reading of US consumer inflation was enough to convince investors that the Federal Reserve could deliver the final rate hike of its monetary policy cycle this month.
Most Gulf Cooperation Council countries, including Qatar, Saudi Arabia and the UAE, have their currencies pegged to the US dollar and generally follow the Fed, exposing the region to a direct impact from any US monetary policy moves.
Saudi Arabia’s benchmark index gained 0.3%, hitting its highest since late-October, led by a 3.1% rise in Saudi National Bank and a 2.5% increase in Alinma Bank.
Separately, the kingdom agreed on Tuesday to buy Turkish drones, one of several lucrative contracts President Tayyip Erdogan secured for Turkey’s struggling economy as Ankara reaps the benefits of his recent diplomatic push to repair ties with Gulf Arab powers.
The two countries also inked several memorandums of understanding in different sectors including energy, real estate and direct investments, SPA said.
Dubai’s main share index - which is trading at an eight-year high - advanced 0.4%.
Gulf stock markets end mixed amid China growth uncertainties
In Abu Dhabi, the index was flat. Japan’s Itochu said on Tuesday it has teamed up with JFE Steel Corp, Emirates Steel Arkan and Abu Dhabi Ports Group for a low-carbon iron supply chain, as Japan and the United Arab Emirates are pursuing green goals.
Shares of Emirates Steel Arkan and Abu Dhabi Ports Co retreated 0.6% each. The Qatari benchmark eased 0.1%, on track to snap four sessions of gains, with Islamic lender Masraf Al Rayan losing 1%.
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