Thursday 28 December 2023

Mideast Stocks: Most Gulf bourses rise on US rate cut bets

Mideast Stocks: Most Gulf bourses rise on US rate cut bets

Most major stock markets in the Gulf rose in early trade on Thursday, tracking an overnight rally in U.S. stocks on optimism that the U.S. Federal Reserve could begin cutting interest rates early next year.

Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Federal Reserve's decisions, as most regional currencies are pegged to the dollar.

Saudi Arabia's benchmark index gained 0.5%, with Elm Co rising 1.3% and auto rental firm Lumi putting on 1.2%.

Oil giant Saudi Aramco, however, eased 0.3%.

Oil prices - a catalyst for the Gulf's financial markets - steadied after falling sharply in the previous session, as concerns eased about shipping disruptions along the Red Sea route even as tensions in the Middle East continued to rise.

Dubai's main share index added 0.4%, with sharia-compliant lender Dubai Islamic Bank rising 0.9%.

The Abu Dhabi index was up 0.3%.

In Qatar, the benchmark index dropped 0.6%, on course to snap a nine-session winning streak, and most of the stocks were in negative territory.

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