DUBAI: Most stock markets in the Gulf ended higher on Thursday supported by hopes of further US interest rate cuts this year and a ceasefire deal in Gaza that could ease geopolitical tensions in the region.
Saudi Arabia’s benchmark index rose 0.2 percent, led by a 0.8 percent rise in Al Rajhi Bank and a 1.1 percent increase in Saudi Arabian Mining Company.
Market participants cheered Israel and Hamas agreeing to the first phase of US President Donald Trump’s plan for Gaza on Wednesday, a ceasefire and hostage deal that could open the way to ending a bloody two-year-old war that has upended the Middle East.
The Gaza ceasefire agreement offers a window of opportunity for significant economic and investment transitions in the Middle East. It presents a chance to rebuild regional confidence and redirect capital toward growth and development rather than caution and risk aversion, said Rania Gule, senior market analyst at XS.COM.
“While the current phase allows investors to move tactically toward higher-risk assets, prudence and disciplined portfolio management remain essential to ensure that this opportunity is leveraged safely and sustainably.”
The Qatari index gained 0.3 percent, with telecom firm Ooredoo advancing 1.6 percent. Federal Reserve officials agreed that risks to the US job market were high enough to warrant a rate cut, but remained wary amid stubborn inflation, per minutes of the September 16–17 meeting released on Wednesday.
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