Most stock markets in the Gulf ended higher on Thursday, driven by hopes that slowing U.S. inflation will convince the Federal Reserve to hit the pause button on interest rate hikes after this month.
Most Gulf Cooperation Council (GCC) countries, including Qatar, Saudi Arabia and the United Arab Emirates, have their currencies pegged to the U.S. dollar and follow Fed policy moves closely, exposing the region directly to monetary tightening in the world's largest economy.
Dubai's main share index gained 0.4%, closing at its highest since Dec. 2015, led by a 1.6% rise in sharia-compliant lender Dubai Islamic Bank, while Commercial Bank of Dubai advanced 2.6%. The lender reported second-quarter net profit of 650.3 million dirhams ($177.05 million), up from 435.1 million dirhams a year ago.
In Abu Dhabi, the index gained 0.1%. The Qatari index climbed 0.9% with most of the stocks in positive territory, including petrochemical maker Industries Qatar, which ended up 3.7%. Global oil benchmark Brent hovered above $80 a barrel after U.S. inflation data implied interest rates are close to their peak.
Saudi Arabia's benchmark index bucked the trend to close 0.2% lower, hit by a 1.2% fall in Dr Sulaiman Al-Habib Medical Services. However, the Saudi index posted its second weekly gain of 1%. The Saudi bourse saw some pressure after gains this month and last, said Ahmed Negm, Head of Market Research MENA at XS.com.
"While some losses remain possible, improving sentiment, stronger oil markets, and solid local fundamentals could push the market to the upside next week."
Outside the Gulf, Egypt's blue-chip index advanced 1.2%, buoyed by a 4.2% rise in tobacco monopoly Eastern Company . The Egyptian stock market continued its rebound thanks to improving global sentiment. At the same time, the market could benefit from the efforts to move forward with the privatisation program, said Negm.
No comments:
Post a Comment