Major stock markets in the Gulf rose in early trade on Thursday, helped by signals from the US Federal Reserve about a possible path to rate cuts, although the Abu Dhabi index bucked the trend.
The Federal Reserve committee’s decision to hold rates at 5.25%-5.5% on Wednesday was no surprise, but it emphasised that rates would not be cut until it had more confidence that inflation was truly beaten.
At a press conference, Fed Chair Jerome Powell flatly stated a cut as early as March seemed unlikely, but also conceded that everyone on the committee was looking to ease this year.
Most Gulf Cooperation Council countries, including the UAE, peg their currencies to the US dollar and follow the Fed’s policy moves closely.
Saudi Arabia’s benchmark index gained 0.7%, on course to snap a three-day losing streak, with Al Rajhi Bank gaining 1.3% and the country’s biggest lender Saudi National Bank rising 1.1%.
Among other gainers, oil giant Saudi Aramco was up 0.8%.
Dubai’s main share index rose 0.6%, with blue-chip developer Emaar Properties gaining 1.1% and Commercial Bank of Dubai jumped 10% on upbeat annual earnings.
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The lender reported full-year net profit of 2.65 billion dirham ($721.6 million), beating market estimates of 2.49 billion dirham.
The Qatari benchmark index edged 0.1% higher, with the Gulf’s biggest lender Qatar National Bank adding 0.5%.
In Abu Dhabi, the index, however, bucked the trend to fall 0.5%, hit by a 3.3% slide in First Abu Dhabi Bank despite reporting a sharp rise in annual profit.
FAB, the UAE’s biggest lender by assets, said net profit surged 63% to 4.01 billion dirhams for the quarter ended Dec. 31, beating average analysts’ expectations of 3.6 billion dirhams.
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