Most stock markets in the Gulf rose on Wednesday as markets waited for a policy decision by the U.S. Federal Reserve, although the conflict in the Middle East remains in focus. Economists widely expect the Fed to leave benchmark borrowing rates unchanged in the range of 5.25% to 5.5% when it announces its decision at 1800 GMT. Most Gulf Cooperation Council countries, including the UAE, peg their currencies to the U.S. dollar and follow the Fed’s policy moves closely.
Saudi Arabia’s benchmark index rose 1.2%, with Etihad Atheeb Telecommunications Co jumping 4.3%, extending gains from the previous session when it reported a sharp rise in quarterly profit. Arabian Pipes Co surged 10%, the top gainer on the index after also reporting a jump in third-quarter earnings.
Dubai’s main share index closed 0.4% higher, led by a 1.8% rise in top lender Emirates NBD Bank. In Abu Dhabi, the index was up 0.9%. The United Arab Emirates’ gross domestic product grew 3.7% in the first half of the year, the economy minister said on Wednesday, as non-oil sector growth vastly outperformed overall growth. Non-oil growth surged 5.9% in the first six months of the year, Abdulla bin Touq Al Marri said at a business conference in Dubai.
The Qatari benchmark closed 0.6% higher, with petrochemical maker Industries Qatar up 1.1%. Oil prices – a catalyst for the Gulf’s financial markets – rose more than 1% ahead of the Fed’s decision, with the market also keeping a close eye on the Israel-Hamas conflict, as geopolitical risks offset record oil production in the U.S.
Outside the Gulf, Egypt’s blue-chip index fell 0.5% with most of its stocks in negative territory, including tobacco monopoly Eastern Co, which retreated 4%.
- SAUDI ARABIA rose 1.2% to 10,815
- ABU DHABI rose 0.9% to 9,429
- DUBAI gained 0.4% to 3,893
- QATAR added 0.6% to 9,579
- EGYPT lost 0.5% to 22,433
- BAHRAIN dropped 0.4% to 1,922
- OMAN declined 1% to 4,502
- KUWAIT decreased 0.8% to 7,084
(Reporting by Ateeq Shariff in Bengaluru; Editing by Kirsten Donovan)
