Most stock markets in the Gulf ended higher on Sunday after US Fed Chair Jerome Powell said at the end of last week that the Federal Reserve does not think the inflation fight is over but that it will proceed “carefully” in its next move.
In remarks delivered on Friday at the central bank conference in Jackson Hole, Wyoming, Powell said inflation was still too high even with recent favourable readings, and that the US central bank has substantial ground to cover to regain price stability.
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.
Most Gulf markets in black ahead of Powell’s speech
Saudi Arabia’s benchmark index gained 0.6%, led by a 0.4% rise in oil giant Saudi Aramco and a 0.3% increase in Al Rajhi Bank.
Separately, the kingdom’s Lumi, one of the largest auto rental firms in the kingdom, on Thursday announced plans to proceed with an initial public offering on the Saudi Exchange.
In Qatar, the index added 0.2%, with telecoms firm Ooredoo advancing 3.7%.
Outside the Gulf, Egypt’s blue-chip index climbed 1.7%, as most of the stocks on the index were in positive territory.
Egypt hopes its imminent inclusion in the BRICS bloc of developing nations will help ease its shortage of foreign currency and attract new investment, but analysts say it may take time before any benefits appear.
SAUDI ARABIA rose 0.6% to 11,470
QATAR gained 0.2% to 10,387
EGYPT up 1.7% to 18,517
BAHRAIN added 0.1% to 1,953
OMAN eased 0.1% to 4,772
KUWAIT down 0.1% to 7,756
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