Monday’s gains on most Gulf stock markets came from U.S. jobs data supporting views that the Federal Reserve won’t raise interest rates any more.
Most Gulf bourses rise: Bond markets have rebounded as positive productivity data and a kind U.S. payrolls report indicated that the labour market was cooling sufficiently to prevent additional rate hikes by the Fed.
On November 1, the U.S. central bank maintained its interest rate, which sparked a surge in world markets and a decline in Treasury yields and the value of the US dollar.
The UAE is one of the majority of Gulf Cooperation Council nations that closely tracks the Fed’s policy decisions and pegs its currencies to the US dollar.
The benchmark index for Saudi Arabia increased by 0.1%, aided by a 6.7% increase in Etihad Atheeb Telecommunication Co.
The giant of the oil industry, Saudi Aramco, increased by 0.5% ahead of its results report on Tuesday.
Oil prices, which are a major driver of the Gulf’s financial markets, increased following the reaffirmation by major exporters Saudi Arabia and Russia of their commitment to further voluntary reduction in oil output through the end of the year.
The blue-chip developer Emaar Properties had a 1.9% increase, while Dubai Islamic Bank saw a 2.4% increase, driving the 0.7% increase in Dubai’s main share index.
Dubai Market Rallies, Gulf Stocks Gain Amid Relaxed Monetary Policies
According to Muhannad Al-Teneiji, the founder of Wealth Training Centre and Matrix for AI Applications, the Dubai stock market continued to rise as investor mood improved following a softening of monetary policy expectations.
“The market may continue to see gains despite the ongoing geopolitical tensions in the region because of strong local fundamentals.”
At the end, the Abu Dhabi index increased by 0.4%.
Further, For the sixth consecutive session, the index in Qatar increased 1.6%. The majority of its constituents saw gains, notably Islamic lender Masraf Al Rayan, which increased 10%.
However, Aside from the Gulf, Alexandria Mineral Oils Co.’s 8.3% decline caused Egypt’s blue-chip index to decline by 0.2%, capping two sessions of advances.
