Major stock markets in the Gulf were mixed in early trade on Monday, amid higher oil prices and rising hopes for an early interest rate cut by the US Federal Reserve.
Oil prices – a catalyst for the Gulf’s financial markets – climbed after Saudi Arabia hiked June crude prices and as the prospect of a Gaza ceasefire deal appeared slim. Brent was up 0.8% at $83.57 a barrel by 0810 GMT.
Saudi Arabia’s benchmark stock index advanced 0.3%, lifted by gains in communications, healthcare, finance and utilities stocks.
Al Rajhi Bank, the world’s largest Islamic lender, rose 1.1%.
Bupa Arabia for Cooperative Insurance surged 7.9% after the health insurer Bupa posted a 90.6% surge in its quarterly net profit.
Dubai’s benchmark stock index was up 0.2%, supported by gains in real estate, utilities, industry and communications sectors.
Blue-chip developer Emaar Properties rose 1.2% and tolls operator Salik Company added 0.6%.
Gulf bourses end higher as Fed cut hopes rise
The Qatari benchmark index eased 0.1%, pressured by losses in most sectors.
Qatar National Bank, the region’s largest lender, shed 0.2% and Mesaieed Petrochemical dropped 0.8%.
In Abu Dhabi, the benchmark stock index fell 0.1%, weighed down by a 5% drop in Agility Global and a 1.3% decline in Multiply Group.
Data released on Friday showed US jobs growth slowed more than expected in April and annual wage gains cooled, boosting bets the Fed would implement its first rate reduction in September.
Most Gulf currencies are pegged to the dollar, and any US monetary policy change is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.
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