Major Gulf markets gain as Fed talk turns dovish | Reuters
Major stock markets in the Gulf rose in early trade on Wednesday, on easing U.S. rate concerns following dovish comments by Federal Reserve officials.
Atlanta Federal Reserve Bank President Raphael Bostic on Tuesday said the U.S. central bank did not need to raise interest rates any further, and saw no recession ahead even as the Fed's rate hikes so far have slowed the economy and brought down inflation.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy because most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI) edged 0.1% higher, helped by a 2.6% increase in Saudi Arabian Mining Company (1211.SE).
Oil - which fuels the Gulf economy - rose as investors grappled with the prospect of supply disruptions due to the new Israel-Palestinian conflict.
The International Monetary Fund further lowered its GDP growth forecast for Saudi Arabia for 2023 to 0.8% and estimated growth of 4% next year in its latest World Economic Outlook Report released on Tuesday.
Among other gainers, Saudi oil and gas driller ADES Holding (2382.SE) jumped nearly 30% in debut above their listing price of 13.50 riyals.
The Saudi exchange permits a rise or fall up to 30% for newly listed stocks on their first three days of trading.
Dubai's main share index (.DFMGI) gained 0.5%, with top lender Emirates NBD (ENBD.DU) advancing 2% and Emirates Central Cooling Systems Corp (EMPOWER.DU) rising 1.6%.
In Abu Dhabi, the index (.FTFADGI) added 0.4%.
The Qatari index (.QSI) climbed 1.6%, on course to extend gains from the previous session, as most of the stocks on the index were in positive territory including Qatar National Bank (QNB) (QNBK.QA), which jumped about 5%, following refinancing syndication for $2 billion unsecured term loan facility.
On Tuesday, QNB, the biggest Gulf bank by assets, reported a nearly 8% rise in third-quarter net profit, helped by loan growth.
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