Most Gulf stock markets closed higher yesterday, rebounding to levels last seen before the recent Iran-Israel conflict, as a holding ceasefire and growing expectations of US rate cuts lifted investor sentiment.
Bahrain gained 0.9pc to 1,937 due to a rise in the communication service sector, the consumer discretionary sector, the financial sector, the industrial sector and the material sector.
Saudi Arabia’s benchmark index advanced 1.2 per cent, led by a 2.3pc rise in Al Rajhi Bank and a 3.3pc increase in Riyad Bank.
The International Monetary Fund on Thursday raised its 2025 GDP growth forecast for Saudi Arabia to 3.5pc from 3pc, partly on the back of demand for government-led projects, and supported by the Opec+ group’s plan to phase out oil production cuts.
The world’s largest group of oil producers, Opec+, is set to announce another big increase of 411,000 barrels per day in production for August as it looks to regain market share, Reuters reported on Friday, citing four delegates from the group.
Qatar stock index gained 0.8pc, with almost all its constituents in positive territory, including the country’s largest lender, Qatar National Bank, which rose 1.2pc.
Investor focus also shifted towards potential US monetary policy easing amid speculation that President Donald Trump may replace the Federal Reserve chair early, fuelling expectations of a more dovish stance from the central bank.
The Fed’s decision affects monetary policy in the Gulf where most currencies, including the Saudi riyal, are pegged to the US dollar.
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