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Updated December 29th, 2023 at 18:27 IST
Saudi benchmark rises 0.1%, led by a 6.3% jump in Etihad Atheeb Telecommunication, while Dubai’s main index climbs 0.2% with Emaar Properties gaining 1.3%.
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The majority of stock markets in the Gulf closed higher, driven by optimism surrounding potential interest rate cuts by the US Federal Reserve in the early part of the upcoming year. This positive outlook was fuelled by recent US data indicating that inflation, according to certain key measures, had either reached or fallen below the central bank’s 2 per cent target. Given that most regional currencies are pegged to the US dollar, monetary policy in the Gulf Cooperation Council (GCC) is often influenced by the decisions of the Federal Reserve.
Market modestly rises
In specific market movements, Saudi Arabia’s benchmark index experienced a modest 0.1 per cent increase, supported by a notable 6.3 per cent jump in Etihad Atheeb Telecommunication. Dubai’s main share index also saw a 0.2 per cent rise, with the prominent developer Emaar Properties gaining 1.3 per cent. The Dubai market, however, displayed limited price fluctuations and continued its sideways movement in recent days. Analysts suggest that this trend might persist for the remaining trading sessions of the year, although potential improvements in global sentiment could positively impact the market.
Qatar’s index advanced by 0.6 per cent, marking its ninth consecutive session gain, driven by a 1.5 per cent increase in the Gulf’s largest lender, Qatar National Bank. The Abu Dhabi index closed 0.1 per cent higher. Amid these positive market movements, geopolitical tensions, including Israel’s ongoing conflict with Hamas, added a layer of complexity to the regional landscape. Israel’s military chief anticipated that the conflict would extend for several months, and the United Nations expressed concern over the escalation of Israeli attacks, resulting in the deaths of more than 100 Palestinians in a part of the Gaza Strip over two days.
Beyond the Gulf region, Egypt’s blue-chip index saw a notable 1.5 per cent climb, with the majority of its constituents registering gains. The tobacco monopoly Eastern Company particularly stood out with a significant increase of 3.7 per cent.
(With Reuters Inputs)
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