© Reuters. A man stands at the Dubai Stock Exchange in a photo from Reuters archives
From Atiq Sharif
December 14 (Reuters) – Most stock markets in the Gulf closed higher on Thursday after the Federal Reserve gave indications that the end of the monetary tightening cycle may be near and began adopting dovish wording for next year.
The US Central Bank kept interest rates unchanged on Wednesday, and its Chairman, Jerome Powell, suggested a near end to the unprecedented monetary tightening policy, with inflation declining at a faster pace than expected.
Monetary policy in the six Gulf Cooperation Council countries is usually guided by Federal Reserve decisions, as most of the region’s currencies are pegged to the dollar.
It increased 1.2 percent, with Al Rajhi Bank shares (TADAWUL:) jumping 3.6 percent and Elm Company shares rising 1.9 percent. The shares of the giant oil company Aramco (TADAWUL:) also rose 0.3 percent.
Oil prices, a major catalyst for financial markets in the Gulf, rose, continuing their gains from the last session thanks to a larger-than-expected weekly withdrawal from US crude inventories and a decline after the US Central Bank hinted at reducing interest rates next year.
The main stock index in Dubai closed up 1.1 percent, supported by a 2.3 percent increase in the leading share of Emaar Properties (DFM:) and 3.3 percent in the share of the Dubai Electricity and Water Authority (DEWA).
In Abu Dhabi, the index increased 0.4 percent.
Abdul Hadi Al-Laabi, Chief Marketing Officer at Kama Capital, said that the Abu Dhabi Stock Exchange recorded a positive performance and benefited from the change in sentiment as well as the recovery.
But he added that oil prices “may nevertheless remain a source of risk for the market while remaining in a downward trend at the present time.”
The Qatari index closed 1.9 percent higher, continuing gains from the last session, when it ended a series of losses that lasted eight days.
Most stocks recorded gains, such as Qatar Islamic Bank, which rose 2.9 percent.
According to Al-Abi, the change in global sentiment helped pull the Qatari stock market out of the current decline trend. However, some risks are likely to remain depending on developments in energy markets, which may continue to be exposed to downside risks.
Outside the Gulf region, the leading stock index fell by 0.2 percent, affected by the decline in the shares of Commercial International Bank (EGX:) by 0.7 percent.
(Prepared by Rehab Alaa for the Arabic Bulletin – Edited by Salma Negm)
2023-12-14 13:58:00
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