Most stock markets in the Gulf gained on Wednesday as investors shrugged off fears of hawkish signals from U.S. Federal Reserve Chair Jerome Powell's congressional testimony.
Powell is scheduled to deliver congressional testimonies on monetary policy on Wednesday and Thursday. Markets expect around a 78% chance of a hike to 5.25-5.5% next month, with that likely being the end of the entire tightening cycle.
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.
Saudi Arabia's benchmark index (.TASI) inched up 0.3%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) rising 1.3% and Company for Cooperative Insurance (8010.SE) climbing 3.9%.
Elsewhere, Morabaha Marina Financing Co (4082.SE), which rose as much as 20.5%, closed 2.3% higher in debut trade.
In Abu Dhabi, the index (.FTFADGI) advanced for a fourth consecutive session, up 0.3%, buoyed by a 2.1% rise in First Abu Dhabi Bank (FAB.AD), the largest lender in UAE.
Among the winners, Abu Dhabi Ship Building (ADSB.AD) gained 1.2% and Abu Dhabi National Energy (TAQA.AD) (TAQA) added 0.9%.
TAQA, the UAE's biggest power producer, said on Wednesday it plans to buy SWS Holding for 1.7 billion dirhams ($462.91 million).
Dubai's benchmark index (.DFMGI) snapped two-session losses, ending 0.2% higher. The index was helped by a 1.2% gain in Emaar Properties (EMAR.DU) and a 2.1% advance in low-cost flyer Air Arabia (AIRA.DU).
Dubai's largest lender Emirates NBD (ENBD.DU) added 0.7%.
In Qatar, the benchmark index (.QSI) lost for a second straight session, ending 0.2% lower. A 0.6% decline in Qatar National Bank (QNBK.QA), the region's largest lender, and a 1% drop in Qatar Islamic Bank (QISB.QA) weighed on the index.
The Qatari bourse remained under pressure and could test this month's lows, said George Pavel, general manager at Capex.com.
"The natural gas market's developments are also leaving the Qatari market without strong support."
Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped for a third consecutive session, closing 1.2% lower, with all the sectors in the red.
Commercial International Bank (COMI.CA) and Abu Qir Fertilizers and Chemical Industries (ABUK.CA) slipped 0.7% and 2.8%, respectively. Eastern Co (EAST.CA) dropped 1.8%.
Separately, the Central Bank of Egypt is expected to leave its overnight interest rates unchanged on Thursday, a Reuters poll showed on Monday.
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