The Saudi Arabian stock market rose in early trade on Thursday as the U.S. Federal Reserve Chair said he expects interest rate cuts later this year, while bourses in Dubai and Qatar were weighed down by stocks trading ex-dividend.
In remarks prepared for delivery to the House Financial Services Committee, Fed Chair Jerome Powell said that continued progress on inflation "is not assured," though the central bank still expects to reduce its benchmark interest rate later 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 gained 0.5%, led by a 6.4% jump in Avalon Pharma (4016.SE), opens new tab and a 0.5% increase in Al Rajhi Bank (1120.SE), opens new tab.
The Kingdom raised the official selling price (OSP) for its flagship Arab Light crude to Asia in April in line with expectations, an Aramco (2222.SE), opens new tab statement showed on Wednesday.
However, oil giant Saudi Aramco was down 0.4% on the day.
Crude prices - a key catalyst for the Gulf's financial markets - eased 0.6% to $82.51.
In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab added 0.1%.
Dubai's main share index (.DFMGI), opens new tab dropped 0.6%, dragged down by a 7.1% slide in Sharia-compliant lender Dubai Islamic Bank (DISB.DU), opens new tab as the stock went ex-dividend.
The Qatari benchmark (.QSI), opens new tab declined 1%, while petrochemical maker Industries Qatar (IQCD.QA), opens new tab retreated 6.2% and telecoms firm Ooredoo (ORDS.QA), opens new tab fell more than 5% as the duo were trading ex-dividend.
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