Major stock markets in the Gulf surged higher on Sunday as optimistic news of a Federal Reserve interest rate cut this week on softer-than-anticipated U.S. inflationary data helped to boost hopes, with the Saudi Arabia index falling together with oil prices.
The U.S. consumer prices rose moderately below the anticipated rise in September after a spike in the price of gasoline was partly offset by a steep decline in rents, putting the Fed on the path of reducing interest rates once again on Wednesday.
The U.S. monetary policies influence the Gulf markets considerably, as the majority of currencies are fixed against the dollar.
The index increased by 0.3 percent in Qatar, with the biggest increase of 1.5 percent in petrochemical producer Industries Qatar, with Barwa Real Estate Company gained 0.3 percent before its nine-month earnings report, which will subsequently be announced later that day on Sunday.
Qatar Electricity and Water Company fell 0.4 percent before the release of nine-month results, also anticipated on Sunday.
The benchmark index of Saudi Arabia declined by 0.2 percent, weighed down by a 0.8 percent decline in Al Rajhi Bank and a 2.6 percent decline in Banque Saudi Fransi (BSF), its fourth consecutive session.
BSF said it had a third-quarter net profit of 1.35 billion riyals ($359.96 million), which was compared to 1.15 billion riyals the preceding year, but it was a downward trend.
In other markets, Saudi Tadawul Group, the owner and operator of the bourse, plummeted 3.4 percent after its quarterly profit fell by 41 percent.
Oil prices, a stimulus of the financial markets of the Gulf, have dropped on Friday over doubts in the marketplace concerning the Trump administration’s commitment to sanctions on the two biggest oil firms in Russia owing to the war in Ukraine.
Other losers include oil giant Saudi Aramco, which was falling 0.5 percent. However, the kingdom’s investment minister announced on Sunday that 85 percent of the kingdom’s goals on its Vision 2030 economic program are either achieved or on course as of the close of 2024.
Beyond the Gulf, Egypt’s blue-chip index gained 1.1 percent and recorded a new high as the majority of its members were in the positive territory, such as the commercial international bank that was up 1.1 percent.
Saudi Arabia declined by 0.2 percent to 0.2 percent to 11,593. Qatar added 0.3 percent to 10,912. Egypt climbed 1.1 percent to 38,102. Bahrain gained 0.7 percent to 2,006. Oman was up 0.5 percent to 5,396. Kuwait eased 0.1 percent to 9,446 ($1 = 3.7504 riyals)
