Most major Gulf markets closed higher on Monday as optimism over China's energy demand outlook and expectations of smaller U.S. rate hikes eased investors' worries, but Qatar extended losses.
Oil prices - a key catalyst for the Gulf's financial markets - declined, but optimism that China's reopening from COVID restrictions will lift energy demand in the world's top crude importer kept prices near 2023 highs.
The benchmark index in Saudi Arabia closed flat, with luxury real estate developer Retal Urban Development rising 1.1% while miner Saudi Arabian Mining continued its slide for second session to close 2.4% lower.
In Abu Dhabi, the index rose 0.5%, with the biggest lender First Abu Dhabi Bank up 1.4%. and Al Dar Properties 2.3% higher. U.S. Federal Reserve policymakers on Thursday expressed relief that inflation continued easing in December, paving the way for a possible step down to a quarter point interest rate increase when the central bank meets in just under three weeks.
Most Gulf currencies are pegged to the dollar and Qatar, Saudi Arabia and the United Arab Emirates usually mirror any monetary policy change in the United States.
Dubai's benchmark index inched up 0.3%, lifted by a rise of 1.4% in Emirates Central Cooling Systems and a gain of 0.8% for lender Emirates NBD. Meanwhile, the United Arab Emirates has decided to invest $30 billion in South Korea's industries as the two countries seek to expand economic cooperation.
Qatar's stock index dived 1.1%, falling for a fifth session in a row, with almost all banking stocks declining, led by a 3.2% slide in the Gulf's biggest lender Qatar National Bank and a 3.4% fall in Qatar Islamic Bank.
The latter reported on Monday after the market close a more than 12% rise in 2022 net profit. Outside the Gulf, Egypt's blue-chip index added 1.8%, continuing its rally since Wednesday.
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