Sunday, 18 February 2024

Most Gulf markets gain on rate cut bets | Reuters

Most Gulf markets gain on rate cut bets | Reuters



Most stock markets in the Gulf ended higher on Sunday after a slump in U.S. retail sales prompted hopes that the Federal Reserve will soon start cutting rates.

Retail sales dipped 0.8% last month, the biggest drop since March 2023, the U.S. Commerce Department's Census Bureau said. Economists polled by Reuters had forecast a 0.1% decline.

Most Gulf Cooperation Council countries, including the United Arab Emirates (UAE), peg their currencies to the U.S. dollar and follow the Fed's policy moves closely.

Saudi Arabia's benchmark index (.TASI), opens new tab added 0.1%, closing at its highest since Aug. 2022, helped by a 5.7% jump in National Shipping Co for Saudi Arabia (4030.SE), opens new tab.

Elsewhere, National Agricultural Development Company (6010.SE), opens new tab surged 10% - the daily maximum limit - following a sharp rise in annual net profit.

The Qatari benchmark (.QSI), opens new tab gained 0.6%, with Qatar National Bank (QNBA.CA), opens new tab, the Gulf's biggest lender, rising 2.4%, while telecoms firm Ooredoo (ORDS.QA), opens new tab finished 2.9% higher.

Oil prices, another catalyst for Gulf markets, settled higher on Friday as geopolitical tensions in the Middle East more than offset a forecast from the International Energy Agency for slowing demand.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.7%, with investment bank EFG Hermes (HRHO.CA), opens new tab rising 2.6%.

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