Rise in most Gulf stock markets with stable oil prices
Most Gulf stock markets abandoned their early losses to close higher on Tuesday, with oil prices stabilizing. However, gains were limited following cautious statements from Federal Reserve officials.
Oil prices, a key driver of Gulf economies, remained stable as investors assessed the potential impact of disruptions to commercial shipping in the Red Sea after attacks by the Houthi movement in Yemen, allied with Iran.
The United States announced a multinational operation on Tuesday to safeguard trade in the Red Sea. Participating countries include Britain, Bahrain, Canada, France, Italy, the Netherlands, Norway, Seychelles, and Spain.
The Saudi index rose by 0.3%, supported by the increase in Lomar, a car rental company, by 1.6%. The Abu Dhabi index increased by 0.2%, and the Dubai index rose by 0.2% with Emaar Properties’ stock rising by 1.1%.
Investor expectations regarding interest rate cuts declined after Federal Reserve officials, including Chicago Fed President Charles Evans and New York Fed President John Williams, stated that they do not anticipate imminent interest rate cuts.
The Qatari index, trading after a two-day halt, rose by 2.2%, with most listed stocks gaining, including a 3.3% increase in the stock of Qatar Islamic Bank.
Outside the Gulf region, Egypt’s leading stock index fell by 1%, and the Commercial International Bank’s stock dropped by 2.5%.
On Monday, Egyptian President Abdel Fattah al-Sisi won a third term in office in an election without any real competition. Al-Sisi described the vote as a rejection of inhumane warfare in the neighboring Gaza Strip.
