Most stock markets in the Gulf ended higher on Wednesday after the usual flurry of annual corporate earnings, while shrugging off concerns about further delay in interest rate cuts following hotter-than-expected U.S. inflation.
U.S. consumer prices increased more than expected in January amid rises in the costs of shelter and healthcare, but the pick-up in inflation likely does not change expectations that the Fed will start cutting rates in the first half of this year.
Most Gulf currencies are pegged to the dollar, and Qatar, Saudi Arabia and the United Arab Emirates usually mirror any monetary policy change in the United States.
Saudi Arabia's benchmark index gained 0.3%, rising for a tenth consecutive session, led by a 8.2% jump in Savola Group. Meanwhile, the kingdom's deficit reached 80.946 billion riyals ($21.58 billion) in 2023's budget, the finance ministry reported on Wednesday. Saudi's expenditures reached 1.293 trillion and revenues stood at 1.212 trillion riyals in the same budget, the ministry added.
In Abu Dhabi, the index finished 0.5% higher, with the country's biggest lender First Abu Dhabi Bank rising 2.6%, while Alpha Dhabi Holding climbed 1.2%, a day after reporting a sharp rise in full-year profit. Abu Dhabi National Company For Building Materials rose 5.5% after its annual losses narrowed and revenue increased.
Dubai's main share index added 0.1%, with Emirates NBD rising 2.9% and blue-chip developer Emaar Properties closing 1.8% higher. Emaar's board doubled the full-year cash dividend to 50 fils a share from 25 fils per share in 2022.
However, budget airline Air Arabia declined 3% following a slide in quarterly profit.
The Qatari benchmark increased 1.2%, as most of its constituents were in positive territory, including Qatar Islamic Bank, which was up 2%.
Outside the Gulf, Egypt's blue-chip index was up 1%, with Commercial International Bank gaining 1.1%.
