Most stock markets in the Gulf ended higher on Thursday as risk appetite returned to financial markets after the U.S. Federal Reserve kept benchmark interest rates - the main driver of world borrowing costs - on hold.
Fed Chair Jerome Powell's comments that its aggressive 20-month run of rate increases was likely to slow the economy after what he had described as the "outsized" jump in Q3 U.S. GDP, was the main takeaway for many analysts, although he had been careful to keep the door open to another hike if needed.
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) rose 0.4%, with Alinma Bank (1150.SE) rising 2.8% and the kingdom's largest lender Saudi National Bank (1180.SE) closing 2.9% higher.
Dubai's main share index (.DFMGI) added 0.5%, with blue-chip developer Emaar Properties (EMAR.DU) hiking 1.5%.
The Dubai stock market continued to see additional gains, extending its rebound. However, the main index remains well below its peak and could remain at risk, said George Khoury, Global Head of Education and Research at CFI.
"Positive company earnings could help the market to continue recovering in addition to the Federal Reserve's decision to keep interest rates unchanged."
In Abu Dhabi, the index (.FTFADGI) gained 0.6%.
Oil - a catalyst for the Gulf's financial markets - gained 1% to snap its three-day decline, after Fed kept benchmark interest rates on hold.
The Qatari benchmark (.QSI) advanced 1.4%, as almost all the stocks on the index were in positive territory including Qatar Islamic Bank (QISB.QA), which was up 1.9%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) concluded 0.9% higher, with Commercial International Bank (COMI.CA) rising 1%.
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