Saudi Arabia and Qatar stocks climbed early Wednesday before a widely expected U.S. Federal Reserve interest rate hike halt. At the same time, other major markets were restrained by falling oil prices.
Saudi Arabia, the UAE, and Qatar follow U.S. monetary policy because most Gulf currencies are pegged to the dollar.
Alinma Bank SJSC (1150. S.E.) rose 2.6%, and Etihad Etisalat Company SJSC (7020. S.E.) rose 3.1%, helping Saudi Arabia’s benchmark index (.TASI) rise 0.4% for a fourth straight session.
Saudi Aramco (2222. S.E.) fell 0.5%.
Citi said on Tuesday that the kingdom’s vow to deepen output cutbacks is unlikely to support a sustainable price hike into the mid $80s to low $90s, even as other brokerages predicted a larger deficit in the year’s second half.
Qatar’s benchmark (.QSI) is up 0.3%, with Ooredoo QPSC (ORDS.QA) up 1.9% and Qatar Electricity and Water Company QPSC up 2%.
Dubai Electricity and Water Authority PJSC (DEWAA.DU) fell 1.5%, dragging down Dubai’s main share index (.DFMGI) by 0.1%.
Abu Dhabi’s.FTFADGI fell 0.1%.
Oil, a crucial catalyst for Gulf financial markets, extended losses as global economic headwinds increased, wiping gains booked after top crude exporter Saudi Arabia’s surprise weekend commitment to further output cutbacks.
