Major stock markets in the Gulf rose in early trade on Thursday, with the Saudi index on course to snap three sessions of losses, ahead of a gathering of global central bankers in Jackson Hole.
A round of soft manufacturing surveys had revived hopes central banks were done with policy tightening, though that might change depending on Federal Reserve Chair Jerome Powell’s speech at the annual summit in Wyoming on Friday.
Oil and gas exporting countries in the Gulf tend to follow the Fed’s rate moves, as most regional currencies are pegged to the US dollar.
Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar. Saudi Arabia’s benchmark index gained 0.4%, and was on course to snap a three-day losing streak, with Bupa Arabia for Cooperative Insurance Co advancing 3.3%.
Dubai’s main share index gained 0.2%, with top lender Emirates NBD gaining 1.2% and a 0.9% increase in sharia-compliant lender Dubai Islamic Bank.
In Abu Dhabi, the index added 0.3%. Separately, the BRICS group of nations has decided to invite six countries including Iran, Saudi Arabia and the United Arab Emirates to become new members of the bloc, South African President Cyril Ramaphosa said on Thursday.
UAE’s President Mohammed bin Zayed said he appreciated the inclusion of his country as a member of BRICS, and described it as an “important group.”
Most Gulf markets track oil prices lower; Egypt jumps
The Qatari benchmark added 0.4%, with most stocks on the index rising, including the Gulf’s biggest lender Qatar National Bank, which was up 1%.
Qatar Investment Authority will invest $1 billion for a 1% stake in India’s Reliance Retail Ventures, the retail arm of Reliance Industries, nearly doubling its valuation to $100 billion from its last funding round in 2020.
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