BNR – Saudi and Qatari stock exchanges climbed in the early session on Wednesday. The increase comes ahead of the widely anticipated halt in interest rate hikes by the US Federal Reserve. It happened, despite the fact that other major markets were down owing to dropping oil prices.
The majority of Gulf currencies are tied to the US dollar. As a result, every shift in US monetary policy is frequently imitated by Saudi Arabia, the UAE, and Qatar.
Gulf Stock Exchanges Defy Market Trend
Saudi Arabia’s benchmark index rose 0.4%, extending advances for the fourth consecutive day. Alinma Bank SJSC increased by 2.6%, while Etihad Etisalat Company SJSC increased by 3.1%. Saudi Aramco, on the other hand, fell 0.5%.
Citi said in a remark on Tuesday that the kingdom’s vow to further output cutbacks is unlikely to support a sustainable price hike into the mid $80s to low $90s. She stated that this is valid even if other brokerages have predicted a larger loss in the second half of the year.
In Qatar, the benchmark rose 0.3%, with Ooredoo QPSC up 1.9% and Qatar Electricity and Water Company QPSC up 2%.
Dubai’s main stock index is down 0.1%, led by a 1.5% drop in utility company Dubai Electricity and Water Authority PJSC. The Abu Dhabi index fell 0.1%.
Economic Headwind
Oil, a crucial driver of the Gulf’s financial markets, continued losses as worries about global economic challenges intensified.
This reversed the gains which were made following Saudi Arabia’s surprising weekend vow to expand output cuts.
