Tuesday 19 December 2023

Most Gulf markets gain as oil steadies; Egypt falls | Reuters

Most Gulf markets gain as oil steadies; Egypt falls | Reuters


Most stock markets in the Gulf reversed early losses to close higher on Tuesday as oil prices steadied, although the gains were limited following cautious comments from the U.S. Federal Reserve officials.

Oil - a catalyst for the Gulf's financial markets - steadied as investors considered the potential impact of maritime trade disruptions in the Red Sea after attacks by Yemen's Iran-aligned Houthi militants.

The United States on Tuesday announced the creation of a multinational operation to safeguard Red Sea commerce. The United Kingdom, Bahrain, Canada, France, Italy, Netherlands, Norway, Seychelles and Spain are among the nations involved.

Saudi Arabia's benchmark index (.TASI) added 0.3%, helped by a 1.6% rise in the shares of auto rental firm Lumi (4262.SE).

In Abu Dhabi, the index (.FTFADGI) was up 0.2%.

Dubai's main share index (.DFMGI) finished 0.2% higher, pushed by a 1.1% gain in blue-chip developer Emaar Properties' (EMAR.DU) stock.

Investor expectations for U.S. interest rate cuts took a step backwards after Fed officials, including Chicago Fed President Austan Goolsbee and Federal Reserve Bank of New York President John Williams, said they did not see rate cuts coming any time soon.

The Qatari benchmark (.QSI), which traded after a two-session break, ended 2.2% higher, with most of its constituents in positive territory, including Qatar Islamic Bank (QISB.QA), which was up 3.3%.

Outside the Gulf, Egypt's blue-chip index (.EGX30) retreated 1%, weighed down by a 2.5% fall in Commercial International Bank (COMI.CA).

Abdel Fattah al-Sisi swept on Monday to a third term as Egypt's president in an election where he faced no serious challengers, calling the vote a rejection of the "inhumane war" in neighbouring Gaza.

** Kuwait bourse was closed

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