Major stock markets in the Gulf were mixed in early trade on Thursday as investors continued to gauge the path of interest rates in the US, although rising oil prices limited losses.
Minutes from the Federal Reserve’s December meeting did little to change investor sentiment.
Policymakers appeared increasingly convinced last month that inflation was coming under control, with growing concern about the damage “overly restrictive” monetary policy might do to the economy, according to the minutes.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.
The Qatari benchmark dropped 0.7%, with Qatar Islamic Bank losing 1.3% and petrochemical maker Industries Qatar retreating 1.3%.
In Abu Dhabi, the index eased 0.1%.
Saudi Arabia’s benchmark index reversed early losses to trade 0.5% higher, with auto rental firm Lumi gaining 1.9%, while oil giant Saudi Aramco added 0.3%.
Oil prices - which fuel the Gulf’s economy - rose adding to solid gains in the previous session on persisting concerns over Middle Eastern supply following disruptions at a field in Libya and heightened tensions around the Israel-Gaza war.
Most Gulf markets rise on US rate cut bets; Qatar retreats
The Organization of the Petroleum Exporting Countries (OPEC) said on Wednesday that cooperation and dialogue within the wider OPEC+ producer alliance will continue.
However, the Saudi index’s gains were limited by losses in petrochemical and cement firms.
Several Saudi Arabian companies released regulatory filings late on Wednesday and Thursday saying that state energy company Saudi Aramco’s decision to raise feedstock and fuel prices for this year will raise production costs and lower earnings.
Among the losers, Saudi Basic Industries Corp declined more than 2%, whereas Sahara International Petrochemical Co slipped 1.9%.
In the cement division, City Cement slid 3.2% and Saudi Cement was down 2.7%.
Dubai’s main share index added 0.1%, helped by a 2.1% increase in toll operator Salik Co.