Most Gulf equities ended higher on Wednesday in tandem with a global stocks rally ahead of U.S. Federal Reserve’s policy meeting, while rising oil prices also lent support.
Crude prices, a catalyst for the Gulf’s financial markets, rose on an expected fall in U.S. crude and fuel inventories, and optimism around the outcome from U.S. and China leaders’ meeting.
Saudi Arabia’s benchmark stock index was up for a third day, rising 0.7% to 11,752, its highest level in six months. Saudi National Bank, the kingdom’s largest lender by assets, gained 2.3% and ADES Holding surged 10%, its highest intraday rise in nearly three months.
Oil and gas driller ADES said it has received resumption notices for one of its offshore contracts and several onshore contracts in Saudi Arabia.
Saudi Arabia is preparing to shift its $925 billion sovereign wealth fund from a focus on real estate gigaprojects that have dominated its development goals for the last decade, a source with direct knowledge of the plans told Reuters.
Dubai’s benchmark stock index edged 0.3% higher, extending its gain to a second consecutive session. Tolls operator Salik climbed 3.3% and Emirates NBD, the emirate’s largest lender, added 2%.
Among other gainers, Union Properties advanced 1.3% after the developer posted a 162% year-on-year increase in nine-month net profit on Tuesday.
The Qatari benchmark index was little changed with Qatar Islamic Bank gaining 0.7% while Estithmar Holding slipped 1.9%.
Most Gulf markets gain on easing US-China trade woes
Investment holding company Estithmar reported a 20% decline in third quarter net profit compared to previous quarter. However, its quarterly profit surged over 100% from a year earlier.
The Abu Dhabi benchmark index fell marginally, as First Abu Dhabi Bank added 1.2%, while Aldar Properties and ADNOC Drilling lost 1.1% and 2.6% respectively.
The Fed is expected to implement a 25-basis-point rate reduction, guiding the U.S. economy with limited economic data following nearly a month of government shutdown.
Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Outside the Gulf, Egypt’s blue-chip index fell 0.2% after four consecutive sessions of gains. Commercial International Bank slipped 0.8% and E-Finance dropped 1.5%.
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SAUDI ARABIA rose 0.7% to 11,752
KUWAIT added 0.8% to 9,524
QATAR ended flat at 10,928
EGYPT down 0.2% to 38,230
BAHRAIN gained 0.8% to 2,048
OMAN rose 0.8% to 5,573
ABU DHABI ended flat at 10,162
DUBAI added 0.3% to 6,089
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American Dollar Exchange Rate