Stock markets in the Gulf ended mixed on Thursday in response to U.S. Federal Reserve Chair Jerome Powell's comments on monetary policy, while the Egyptian bourse hit a record high after the country's International Monetary Fund deal.
Fed Chair Powell said on Wednesday continued progress on inflation "is not assured", though the U.S. central bank still expects to reduce its benchmark interest rate this year.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by Fed policy since most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab edged 0.1% higher, helped by a 5.5% rise in Avalon Pharma (4016.SE), opens new tab.
The Saudi stock market was volatile after two successive days of gains and there were mixed performances among its major stocks although some banks continued their rebound for a second day in a row, said Joseph Dahrieh, Managing Principal at Tickmill.
"The market could find some resistance near its peak in February and could be exposed to some price corrections."
Dubai's main share index (.DFMGI), opens new tab fell 0.3%, hit by a 8% slide in sharia-compliant lender Dubai Islamic Bank (DISB.DU), opens new tab as the lender traded ex-dividend.
The Qatari benchmark (.QSI), opens new tab dropped 0.7%, weighed down by a 6.8% fall in petrochemical maker Industries Qatar (IQCD.QA), opens new tab and a 4.6% decline in telecoms firm Ooredoo (ORDS.QA), opens new tab as the duo went ex-dividend.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 5.2%, with top lender Commercial International Bank (COMI.CA), opens new tab advancing 9.5%.
Egypt secured an expanded $8 billion deal on Wednesday with the IMF, hours after the central bank unshackled its currency and delivered a 600 basis points rate hike in a push to stabilise the economy.
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