Most stock markets in the Gulf ended higher on Wednesday as expectations of an end to a global rate hike cycle spurred investors following benign inflation readings in the United States.
On Tuesday, data showed U.S. headline consumer prices were flat in October, against expectations for a 0.1% rise. Core CPI, at 0.2%, also came in below a forecast of 0.3%.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the decisions of the U.S. Federal Reserve, as most regional currencies are pegged to the dollar.
Saudi Arabia’s benchmark index gained 1.5%, extending gains from the previous session, led by a 3.9% rise in Al Rajhi Bank and a 4.5% increase in Saudi Telecom Co.
The Saudi stock market extended its gains but could find some resistance near its previous peak, said George Pavel, General Manager at Capex.com Middle East.
“At the same time, oil market performance could continue to weigh on sentiment.”
Most Gulf markets in red ahead of US inflation data
Oil prices - a catalyst for the Gulf’s financial markets - dipped amid signs the United States, the world’s biggest oil producer, is at peak production, offsetting positive crude demand signals from top consumer China.
On the other hand, oil giant Saudi Aramco retreated 1%, as it went ex-dividend.
Saudi Arabia’s Saudia Technic, the aircraft maintenance subsidiary of state-owned Saudia Group, is targeting a public share sale before the end of the decade, its CEO told Reuters at the Dubai Airshow.
In Abu Dhabi, the index closed 0.4% higher.
The Qatari benchmark advanced 1.6%, as most of its constituents were in positive territory including Qatar Islamic Bank, which gained 2.7%.
Dubai’s main share index, however, eased 0.3%.
The Dubai bourse recorded price corrections after a short period of stabilization, said Pavel.
“Mitigated earnings weighed on sentiment although local fundamentals remain strong and could help limit losses.”
Outside the Gulf, Egypt’s blue-chip index advanced 1%.
======================================== SAUDI ARABIA rose 1.5% to 11,023 ABU DHABI up 0.4% to 9,566 DUBAI lost 0.3% to 3,961 QATAR gained 1.6% to 10,179 EGYPT advanced 1% to 24,139 BAHRAIN was up 0.3% to 1,945 OMAN added 0.2% to 4,584 KUWAIT gained 1.4% to 7,278 ========================================
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