Most stock markets in the Gulf ended higher on Tuesday on bets for an imminent end to US interest rate hikes, although the Saudi index eased on volatile energy prices.
A 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.
Major Gulf bourse in red on falling oil prices
Dubai’s main share index gained 0.2%, trading at its highest since late 2015, led by a 1.1% rise in utility firm Dubai Electricity and Water Authority.
The Dubai bourse extended its uptrend thanks to the positive sentiment among traders overall. Strong local fundamentals continue to support the market and could help the main index continue to rise, said Daniel Takieddine, CEO MENA at BDSwiss.
“However, the market could remain exposed to some price correction due to the long series of gains if traders move to secure their gains.”
In Abu Dhabi, the inndex inched 0.1% higher.
The Qatari benchmark index added 0.3%, with Qatar Islamic Bank gaining 0.8%.
Saudi Arabias benchmark index eased 0.1% in a choppy trade, hit by a 2% slide in Dr Sulaiman Al-Habib Medical Services.
Oil prices - a key catalyst for the Gulf’s financial markets - were little changed as investors weighed a possible tightening of US crude supplies against weaker-than-expected Chinese economic growth.
Outside the Gulf, Egypt’s blue-chip index climbed 0.5%, as most of the stocks on the index were in positive territory including Fawry For Banking Technology and Electronoc Payment, which gained 1.6%.
SAUDI ARABIA eased 0.1% to 11,769
ABU DHABI rose 0.2% to 9,698
DUBAI added 0.1% to 4,022
QATAR gained 0.3% to 10,36
EGYPT up 0.5% to 17,608
BAHRAIN increased 0.3% to 1,777
OMAN was up 1.1% to 4,810
KUWAIT climbed 0.5% to 8,161
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