Stock markets in the Gulf ended higher on Thursday, as rising expectations of an end to the U.S. Federal Reserve’s rate hike cycle boosted risk appetite.
U.S. retail sales fell in October, though by less than expected, after months of strong gains, pointing to slowing demand that could further strengthen expectations that the Federal Reserve is done hiking interest rates.
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 0.5%, with Etihad Atheeb Telecommunication advancing 5.1% and oil behemoth Saudi Aramco rising 0.5%.
The kingdom’s crude oil exports in September rose 3% from the previous month to 5.75 million barrels per day (bpd), data from the Joint Organizations Data Initiative (JODI) showed on Thursday.
Most stock markets in the Gulf in black on interest rate cuts bets
Dubai’s main share index added 0.6%, led by a 1.2% gain in blue-chip developer Emaar Properties.
The Dubai stock market rebounded to a certain extent but continued to see significant volatility and uncertainty, said George Khoury, global head of education and research at CFI.
“While the main index remained within a range for most of this month, changing expectations regarding US monetary policy could support sentiment and could help the market see gains.”
In Abu Dhabi, the index added 0.4%.
The Qatari benchmark was up 0.4%, with petrochemical maker Industries Qatar advancing 1.7% and a 1.1% increase in Qatar Islamic Bank.
The Qatari stock market recorded more gains, supported by the banking sector, and could extend its rebound after moving beyond its previous peak, said Khoury.
“However, the market could see some risks from the performance in natural gas markets where uncertainty could weigh on sentiment.”
Outside the Gulf, Egypt’s blue-chip index advanced 1%.
========================================= SAUDI ARABIA rose 0.5% to 11,082 ABU DHABI up 0.4% to 9,607 DUBAI gained 0.6% to 3,985 QATAR was up 0.4% to 10,221 EGYPT advanced 1% to 24,383 BAHRAIN increased 0.1% to 1,947 OMAN rose 0.8% to 4,619 KUWAIT added 0.2% to 7,292 =========================================
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