Gulf markets closed higher amid anticipation of the US Central Bank chief’s speech
The Saudi stock market closed higher on Sunday on the back of the rise in oil prices on Friday, although the gains were limited, while investors await a speech by the Chairman of the Federal Reserve (US Central Bank) to elicit more clues about the stance of monetary policy.
The main index of Saudi Arabia rose 0.4%, led by a 1.7% rise in the share of the Saudi Basic Industries Corporation (SABIC), and the share of Riyad Bank, 1.8%.
Oil prices, one of the main catalysts for financial markets in the Gulf, rose about 1% on Friday after a decline in US crude production, which may increase the expected supply scarcity during the rest of this year.
In Qatar, the main index rose 0.1%, supported by a 1.3% rise in the Commercial Bank’s share.
Investors will be watching Federal Reserve Chairman Jerome Powell’s speech on Friday for clues on the interest rate outlook.
Oil and gas exporters in the Gulf tend to follow the Fed’s interest rate movement, as most regional currencies are pegged to the dollar. Only the Kuwaiti dinar is linked to a basket of currencies that includes the dollar.
Outside the Gulf region, the leading stock index in Egypt rose 0.4%, with the share of the Eastern Company, the monopoly of the tobacco industry, rising 2.9%.
(Reuters)
2023-08-20 21:11:34
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