Gulf stock markets closed higher on Tuesday, supported by expectations of an economic recovery in China, the world’s second-largest economy, and a slowdown by the Federal Reserve in raising interest rates.
Most economists polled by Reuters said the Fed will end its tightening cycle after raising interest rates by 25 basis points at each of its next two meetings and is likely to leave interest rates steady for at least the rest of the year.
Most Gulf countries peg their currencies to the US dollar, and Saudi Arabia, the UAE and Qatar usually follow the example of the United States in their monetary policy, according to Reuters.
The International Energy Agency said on Wednesday that the lifting of restrictions related to COVID-19 in China will lead to global oil demand rising to record levels this year.
The main index of the Saudi market rose 0.3%, supported by gains in the raw materials, energy and financial sectors.
Oil giant Aramco rose 0.6%, and Al-Rajhi Bank, the world’s largest Islamic bank by market value, rose 0.8%.
The Abu Dhabi index rose 0.6%, ending its losses, which lasted for 4 consecutive sessions. The share of First Abu Dhabi Bank rose 2.7%, and the share of Aldar Properties rose 1.3%.
Dubai’s main index rose 0.4%, supported by gains in the financial and real estate sectors.
Dubai Islamic Bank rose 2.2%, Mashreq Bank rose 3.1%, and Emaar Properties rose 0.3%.
The Qatari index rose 0.7%, continuing its rise since Thursday, with the shares of most listed companies rising.
Qatar Islamic Bank continued its gains, up 2.3%, and Qatar International Islamic Bank rose 1.7%.
Outside the Gulf region, the blue-chip index in Egypt rose 1.6%, continuing its rise since Wednesday.