Most stock markets in the Gulf ended higher yesterday, helped by rising oil prices and positive market sentiment amid growing expectations of additional Federal Reserve rate cuts.
Oil prices – a catalyst for the Gulf’s financial markets – rose after the US intercepted an oil tanker in international waters off the coast of Venezuela and tensions in Russia’s war against Ukraine remained high, both of which raised fears of supply disruptions.
Saudi Arabia’s benchmark index gained 0.7 per cent, led by a 1.6pc rise in Al Rajhi Bank. Saudi Arabian Mining Company (Ma’aden) jumped 5.3pc after it secured Energy Ministry’s approval last week for feedstock allocation to launch its fourth phosphate project.
Bahrain All Share Index closed at 2,062.17 points, marking a decrease of 4.94 points below the previous closing.
This decrease was due to a drop in the communication service sector, the financial sector and the consumer staple sector.
Bahrain Islamic Index closed at 1,026.39 points, a decrease of 3.55 points below the previous closing. Results indicated that 92 equity transactions took place with a volume of 2,797,668 worth BD1,215,884.
Investors traded mainly in the material sector, representing 49.11pc of the total value of securities traded.
Dubai’s main share index closed 0.7pc higher, with top lender Emirates NBD adding support.
In Abu Dhabi, the index advanced 0.7pc. Markets are currently pricing in two US rate cuts for next year despite the Fed signalling caution. Monetary policy shifts in the US have a significant impact on Gulf markets, where most currencies are pegged to the dollar. The Qatari index was up 0.8pc, supported by a 1.5pc gain in the Gulf’s biggest lender Qatar National Bank.
Outside the Gulf, Egypt’s blue-chip index dropped 0.6pc, hit by a 2.4pc fall in Commercial International Bank.
US stocks kicked off the holiday-shortened week on a positive note, as technology stocks extended their recent gains on renewed interest in AI-related companies, while investors awaited key economic data later this week.
A rally in tech stocks starting late last week, driven by Micron Technology’s blowout forecasts and a benign inflation report, has left the S&P 500 and Dow less than 1pc away from their record closing peak on December 11.
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