Stock markets in the Gulf were mixed on Wednesday amid a dovish shift in tone from the U.S. Federal Reserve policymakers, while traders kept an eye on the conflict between Palestinian militants and Israel.
Several Fed officials in recent days have suggested that the U.S. central bank doesn’t need to raise borrowing costs any further.
The Fed’s September policy meeting minutes are due to be released later on Wednesday.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by policy decisions by the Fed because most regional currencies are pegged to the U.S. dollar.
The Qatari index was up for a second straight session and surged 1.7%, as most of its stocks rose. Qatar Islamic Bank was up 2.1% and Qatar National Bank (QNB) jumped 5.3%.
On Tuesday, QNB, the biggest Gulf bank by assets, reported a nearly 8% rise in third-quarter net profit, helped by loan growth.
Dubai’s benchmark index snapped two-session losses and closed 0.8% higher, lifted by gains in finance and utilities sectors with Emaar Properties rising 2.3% and National Central Cooling Co surging 4.6%.
The emirate’s largest lender Emirates NBD climbed 2.3%.
In Abu Dhabi, the benchmark index bounced back from a five-session losing streak and closed 0.4% higher, with Abu Dhabi National Oil Company for Distribution advancing 3.5% and Aldar Properties gaining 2.5%.
Saudi Arabia’s benchmark index closed 0.6% lower, weighed by losses in all sectors with oil major Saudi Aramco dropping 1.3% and Etihad Atheeb Telecommunication sliding 3.1%.
However, shares in newly-listed ADES Holding closed at 17.54 riyals ($4.68), 30% up from an initial public offering price of 13.50 riyals a share, LSEG Eikon data showed.
Oil and gas driller ADES had raised $1.22 billion in an IPO last month.
Outside the Gulf, Egypt’s blue-chip index fell 0.4%, dragged down by a 1.7% drop in Commercial International Bank and 2.5% decline in Telecom Egypt.
Meanwhile, investors continued to monitor developments on the conflict in Middle East, as Israeli warplanes on Wednesday Gaza repeatedly ahead of a possible ground offensive in the Palestinian coastal strip.
====================================== SAUDI ARABIA fell 0.6% to 10,573 KUWAIT lost 1% to 7,192 QATAR rose 1.7% to 10,023 EGYPT fell 0.4% to 19,653 BAHRAIN lost 0.2 to 1,939 OMAN was up 0.2% to 4,778 ABU DHABI added 0.4% to 9,648 DUBAI gained 0.8% to 4,082 ======================================
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