Major Gulf markets in black as Fed keeps rates unchanged | Reuters
Major stock markets in the Gulf rose in early trade on Thursday after the U.S. Federal Reserve's rate pause and policy commentary led to hopes of an end to further rate hikes.
The Fed held interest rates steady on Wednesday as policymakers struggled to determine whether financial conditions may be tight enough already to control inflation, or whether an economy that continues to outperform expectations may need still more restraint.
While Chair Jerome Powell did not rule out another hike, markets judged he was not quite as hawkish as he might have been.
Most Gulf Cooperation Council countries, including the UAE, peg their currencies to the U.S. dollar and follow the Fed's policy moves closely.
Saudi Arabia's benchmark index (.TASI) advanced 1%, with Elm Co (7203.SE) gaining 1.8%, while Saudi Basic Industries Corp (SABIC) (2010.SE) jumped more than 4% despite reporting quarterly loss.
SABIC, one of the world's biggest petrochemical companies, reported a net loss of 2.88 billion riyals ($768 million) for the three months to Sept. 30, compared with a profit of 1.84 billion riyals a year earlier.
Elsewhere, Mouwasat Medical Services Co (4002.SE) added 1.4% following a sharp rise in quarterly profit.
Dubai's main share index (.DFMGI) rose 0.5%, with Emirates Central Cooling Systems (EMPOWER.DU) increasing 1.2%.
The United Arab Emirates' gross domestic product grew 3.7% in the first half of the year, the economy minister said on Wednesday, as non-oil sector growth vastly outperformed overall growth.
In Abu Dhabi, the index (.FTFADGI) was up 0.5%.
Oil - which fuels the Gulf economy - gained 1% to snap its three-day decline, as risk appetite returned to financial markets after the U.S. Federal Reserve kept benchmark interest rates on hold.
The Qatari benchmark (.QSI) climbed 1.4%, as most of the constituents on the index were in positive territory including Qatar Islamic Bank (QISB.QA), which was up 1.9%.
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