Most stock markets in the Gulf ended higher on Tuesday as investors awaited U.S. labour data this week that could guide global monetary policy. A U.S. labor market report on Friday will give a crucial read into the economy’s health and test investors’ confidence that interest rate cuts are coming soon, a view that has helped lift U.S. equities to record-high levels.
The Fed’s stance holds implications for Gulf economies, where most currencies are pegged to the U.S. dollar, making it an anchor for regional monetary stability. Markets widely expect the Fed to lower interest rates later this month, pricing in an 89% chance of a 25-basis-point cut.
Dubai’s main share index reversed early losses to close 0.7% higher, helped by a 1.4% rise in blue-chip developer Emaar Properties.
In Abu Dhabi, the index added 0.2%. The Abu Dhabi stock markets rebounded following three consecutive sessions of decline and a broader market correction after recent significant gains, said Milad Azar, market analyst at XTB MENA.
“Positive performance from leading stocks supported the broader market, while higher oil prices also helped sentiment, although the risk of lower price levels still persists.”
Oil prices – a catalyst for the Gulf’s financial markets – rose over 2% as expectations mounted that an escalation of the conflict between Russia and Ukraine would disrupt supply and the market speculated OPEC+ will not raise output at a meeting on Sunday.
Saudi Arabia’s benchmark index finished flat after six consecutive sessions of losses. According to Azar, a rebound in oil prices is positive as oil at its current lower levels still represents a risk to the GCC economies and markets.
The Qatari index edged 0.1% higher, helped by a 0.4% rise in the Gulf’s biggest lender Qatar National Bank.
Outside the Gulf, Egypt’s blue-chip index concluded flat.
- SAUDI ARABIA was flat at 10,667
- Abu Dhabi rose 0.2% to 10,034
- Dubai gained 0.7% to 6,011
- QATAR added 0.1% to 11,175
- EGYPT was flat at 35,157
- BAHRAIN was up 0.1% to 1,936
- OMAN rose 0.4% to 5,120
- KUWAIT increased 0.3% to 9,132
(Reporting by Ateeq Shariff in Bengaluru; Editing by Sharon Singleton)
