© Reuters. A screen showing data from the Saudi Stock Exchange in Riyadh – Photo from Reuters archive.
(Reuters) – Most Gulf stock markets closed higher on Wednesday after fears of a banking crisis subsided and investor sentiment was boosted by expectations that the US Federal Reserve would raise interest rates less than previously.
Markets are now awaiting the Federal Reserve’s monetary policy decision, which is issued later on Wednesday, and most analysts expect the bank to raise interest rates by 25 basis points to curb inflation, but Goldman Sachs (NYSE:) said that not raising would be a “justified” move. “.
Most Gulf states peg their currencies to the US dollar, and the UAE and Qatar usually follow the lead of the United States in their monetary policy.
The Qatari stock index rose 1 percent, continuing its gains from the previous session, with the rise of all sectors, led by the industrial and financial services sectors.
Qatar Islamic Bank rose 0.7 percent, and Qatar International Islamic Bank rose 1.5 percent, while Industries Qatar jumped 5.2 percent.
In Abu Dhabi, the index rose 0.6 percent, after falling for two sessions, supported by a 5.4 percent jump in ADNOC Gas shares and a 2.8 percent rise in Alpha Abu Dhabi Holding.
First Abu Dhabi Bank, the largest lender in the UAE, and Abu Dhabi Commercial Bank, the third largest bank in the country, advanced 1.6 percent and 2.5 percent, respectively.
The main rally continued from the previous sessions and closed 0.4 percent higher, supported by gains in most sectors. Emaar Properties (DFM:) rose 1.6 percent, and Emirates Central Cooling Systems Corporation rose 2.5 percent.
Emirates NBD Bank, the emirate’s largest bank, rose 0.8 percent.
As for the main index of Saudi Arabia, it fell 0.1 percent, ending gains that lasted three sessions. The index fell due to losses in the materials, health and financial services sectors. The share of Dr. Sulaiman Al Habib Medical Group fell 1.9 percent, and the share of the Saudi Basic Industries Corporation (SABIC (TADAWUL:)) 1.2 percent.
Al-Rajhi Bank, the world’s largest Islamic bank by assets, fell 2 percent, the biggest drop in a day in a month, and came as it traded without dividends.
However, the share of Mouwasat Medical Services (TADAWUL:) jumped 10 percent, which is the highest rise in a session since March 2020.
On Wednesday, the company reported an increase in full-year net profit, beating analysts’ expectations.
Outside the Gulf region, the blue-chip index fell 0.5 percent, ending gains that lasted two sessions, due to losses in almost all sectors. Fawry banking services fell 2.8 percent, and Telecom Egypt (EGX:) fell 4.2 percent.
Egypt had decided to suspend the sale of a stake in the state-controlled company due to market conditions.
(Prepared by Duaa Muhammad for the Arabic Bulletin – Edited by Mahmoud Reda Murad)
