(Updates to move close prices)
By Ateeq Shariff
Oct 9 - Most stock markets in the Gulf ended higher on
Thursday supported by hopes of further U.S. interest rate cuts
this year and a ceasefire deal in Gaza that could ease
geopolitical tensions in the region.
Saudi Arabia's benchmark index rose 0.2%, led by a
0.8% rise in Al Rajhi Bank and a 1.1% increase in
Saudi Arabian Mining Company.
Market participants cheered Israel and Hamas agreeing to the
first phase of U.S. President Donald Trump's plan for Gaza on
Wednesday, a ceasefire and hostage deal that could open the way
to ending a bloody two-year-old war that has upended the Middle
East.
The Gaza ceasefire agreement offers a window of opportunity
for significant economic and investment transitions in the
Middle East. It presents a chance to rebuild regional confidence
and redirect capital toward growth and development rather than
caution and risk aversion, said Rania Gule, senior market
analyst at XS.COM.
"While the current phase allows investors to move tactically
toward higher-risk assets, prudence and disciplined portfolio
management remain essential to ensure that this opportunity is
leveraged safely and sustainably."
The Qatari index gained 0.3%, with telecom firm
Ooredoo advancing 1.6%.
Federal Reserve officials agreed that risks to the U.S. job
market were high enough to warrant a rate cut, but remained wary
amid stubborn inflation, per minutes of the September 16-17
meeting released on Wednesday.
Markets are pricing in a 25-basis-point cut each in October
and December, with probabilities of 93% and 78%, respectively,
according to the CME FedWatch tool.
The Fed's stance carries heavy clout in the Gulf, where most
currencies are pegged to the U.S. dollar, anchoring regional
monetary policy.
In Abu Dhabi, the index inched 0.1% higher.
However, gains were limited by losses in Abu Dhabi National Oil
Company's (ADNOC) listed subsidiaries, including ADNOC Drilling
, which declined 3.6%.
Abu Dhabi state oil giant ADNOC said on Wednesday that its
six publicly listed subsidiaries will distribute 158 billion
dirhams ($43.02 billion) in dividends by 2030.
** Egypt was closed for a public holiday
Saudi rose 0.2%
Arabia to 11,583
Abu Dhabi up
0.1%% to 10,143
Dubai was flat
at 5,958
Qatar added 0.3%
to 10,897
Bahrain finished
flat at 1,971
Oman gained 1%
to 5,250
Kuwait lost 0.5%
to 9,302
($1 = 3.6729 UAE dirham)
(Reporting by Ateeq Shariff in Bengaluru; Editing by Janane
Venkatraman and Tasim Zahid)
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