Stock markets in the Gulf ended mixed on Thursday as regional tensions escalated, but there were some signs of optimism that the U.S. Federal Reserve could still deliver two rate cuts this year.
The Fed kept interest rates steady on Wednesday, as was anticipated, and reiterated its forecast for two quarter-percentage-point rate cuts before the end of the year.
The Fed’s decision affects monetary policy in the Gulf where most currencies, including the Saudi riyal, are pegged to the U.S. dollar.
Saudi Arabia’s benchmark index gained 0.4%, with oil giant Saudi Aramco advancing 2.6% and ACWA Power Company increasing 1%.
Aramco has launched a pilot direct air capture unit able to remove 12 tons of carbon dioxide per year from the atmosphere, it said on Thursday.
Dubai’s main share index finished 0.3% higher, with toll operator Salik Company rising 1.9%. Utility firm Dubai Electricity and Water Authority was up 1.2%.
Most Gulf markets gain; Saudi falls on regional tensions
In Abu Dhabi, the index dropped 0.7%, weighed by a 7% slide in the country’s biggest lender, First Abu Dhabi Bank, on trading ex-dividend.
Low oil prices also contributed negatively to the general market performance. This factor may continue to exert pressure as petroleum prices remain at lower levels without signs of a potential rebound, said Joseph Dahrieh, Managing Principal at Tickmill.
Oil prices were little changed as a higher-than-expected fuel inventories drawdown in the U.S. and renewed tensions in the Middle East countered strength in the dollar.
The Qatari index lost 0.4%, with Qatar Gas Transport falling 2.4%.
Outside the Gulf, Egypt’s blue-chip index climbed 1.1%, led by a 6.5% rise in tobacco monopoly Eastern Company.
--------------------------------------- SAUDI ARABIA rose 0.4% to 11,760 Abu Dhabi fell 0.7% to 9,368 Dubai rose 0.3% to 5,131 QATAR down 0.4% to 10,344 EGYPT added 1.1% to 31,678 BAHRAIN eased 0.2% to 1,962 OMAN added 0.6% at 4,411 KUWAIT gained 0.6% to 8,496 ---------------------------------------
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