Most stock markets in the Gulf ended higher on Thursday supported by hopes of further U.S. interest rate cuts this year and a ceasefire deal in Gaza that could ease geopolitical tensions in the region.
Saudi Arabia's benchmark index (.TASI), opens new tab rose 0.2%, led by a 0.8% rise in Al Rajhi Bank (1120.SE), opens new tab and a 1.1% increase in Saudi Arabian Mining Company (1211.SE), opens new tab.
Market participants cheered Israel and Hamas agreeing to the first phase of U.S. President Donald Trump's plan for Gaza on Wednesday, a ceasefire and hostage deal that could open the way to ending a bloody two-year-old war that has upended the Middle East.
The Gaza ceasefire agreement offers a window of opportunity for significant economic and investment transitions in the Middle East. It presents a chance to rebuild regional confidence and redirect capital toward growth and development rather than caution and risk aversion, said Rania Gule, senior market analyst at XS.COM.
"While the current phase allows investors to move tactically toward higher-risk assets, prudence and disciplined portfolio management remain essential to ensure that this opportunity is leveraged safely and sustainably."
The Qatari index (.QSI), opens new tab gained 0.3%, with telecom firm Ooredoo (ORDS.QA), opens new tab advancing 1.6%.
Federal Reserve officials agreed that risks to the U.S. job market were high enough to warrant a rate cut, but remained wary amid stubborn inflation, per minutes of the September 16–17 meeting released on Wednesday.
Markets are pricing in a 25-basis-point cut each in October and December, with probabilities of 93% and 78%, respectively, according to the CME FedWatch tool.
The Fed's stance carries heavy clout in the Gulf, where most currencies are pegged to the U.S. dollar, anchoring regional monetary policy.
In Abu Dhabi, the index (.FTFADGI), opens new tab inched 0.1% higher. However, gains were limited by losses in Abu Dhabi National Oil Company's (ADNOC) listed subsidiaries, including ADNOC Drilling (ADNOCDRILL.AD), opens new tab, which declined 3.6%.
Abu Dhabi state oil giant ADNOC said on Wednesday that its six publicly listed subsidiaries will distribute 158 billion dirhams ($43.02 billion) in dividends by 2030.
** Egypt was closed for a public holiday
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