Most stock markets in the Gulf ended higher on Tuesday on upbeat corporate earnings as investors awaited interest rate decisions by U.S. Federal Reserve policy meeting.
The Fed is expected to leave policy rates on hold at the end of its two-day meeting that starts on Tuesday. Market participants will focus on the message from policymakers to gauge the interest rate outlook.
Most Gulf Cooperation Council countries, including the UAE, have their currencies pegged to the U.S. dollar and follow the Fed’s policy moves closely, exposing the region to the direct impact of monetary tightening in the world’s largest economy.
Saudi Arabia’s benchmark index advanced 1.5%, buoyed by a 10% surge in Etihad Atheeb Telecommunication Co following an upbeat quarterly earnings report.
The telecoms firm, which recorded its best day since March, reported second-quarter net profit of 47.9 million riyals ($12.77 million), up from 6.6 million riyals year ago.
The Saudi stock market extended its gains and continued to see improving performances in the banking sector and others. Company earnings could continue to affect local sentiment, said George Pavel, general manager at Capex.com Middle East.
“However, the market could be exposed to price corrections if traders move to secure their gains.”
Elsewhere, oil giant Saudi Aramco rose 1.1%.
Oil prices - a catalyst for the Gulf’s financial markets - edged up helped by a drop in euro zone inflation but were pinned below $90 a barrel on weak Chinese economic data and as the conflict in the Middle East remained contained.
Dubai’s main share index finished 1% higher, with blue-chip developer Emaar Properties rising 2.9%.
In Abu Dhabi, the index added 0.6%.
The Qatari benchmark edged 0.1% higher, helped by a 5.3% jump in Ooredoo, a day after the telecoms firm reported a sharp rise in third-quarter profit.
Outside the Gulf, Egypt’s blue-chip index declined 3.8%, retreating from a record high, as most of the constituents were in negative territory including Abu Qir Fertilizers.
======================================= SAUDI ARABIA rose 1.5% to 10,690 ABU DHABI rose 0.6% to 9,344 DUBAI advanced 1% to 3,877 QATAR added 0.1% to 9,524 EGYPT lost 3.8% to 22,551 BAHRAIN eased 0.1% to 1,929 OMAN was flat at 4,545 KUWAIT added 1.4% to 7,143 =======================================
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