Mideast Stocks: Most major Gulf markets gain ahead of US Fed rate meeting

Gulf Keystone Petroleum

31/10/2023 08:55

Oct 31 (Reuters) - Most major stock markets in the Gulf
rose in early trade on Tuesday as investors awaited interest
rate decisions by U.S. Federal Reserve policy meeting later this
week.
    The Fed is expected to leave policy rates on hold at the end
of its two-day meeting that starts on Tuesday. Market
participants will focus on the message from policymakers to
gauge the interest rate outlook.
    Most Gulf Cooperation Council countries, including the UAE,
have their currencies pegged to the U.S. dollar and follow the
Fed's policy moves closely, exposing the region to the direct
impact of monetary tightening in the world's largest economy.
    Saudi Arabia's benchmark index  .TASI  advanced 1%, buoyed
by a 10% surge in Etihad Atheeb Telecommunication Co  7040.SE 
following an upbeat quarterly earnings.
    The telecoms firm, which is on track for its best day since
Oct. 15, reported second-quarter net profit of 47.9 million
riyals ($12.77 million), up from 6.6 million riyals year ago.
    Separately, the World Bank said on Monday it expected global
oil prices to average $90 a barrel in the fourth quarter and
fall to an average of $81 in 2023 as slowing growth eases
demand, but warned that an escalation of the latest Middle East
conflict could spike prices significantly higher.
    Oil prices - a key factor for the Gulf's financial markets,
rose in Asian trade after a drop of more than 3% in the previous
session, as worries over supply stirred by conflict in the
Middle East blunted a dismal showing of China data.
    Dubai's main share index  .DFMGI  gained 0.2%, helped by a
1.2% rise in blue-chip developer Emaar Properties  EMAR.DU .
    In Abu Dhabi, the index  .FTFDGI  added 0.3%.
    The Qatari benchmark  .QSI  eased 0.5%, with petrochemical
maker Industries Qatar  IQCD.QA  losing 3.5%.
    Israeli troops and tanks attacked Gaza's main northern city
from the east and west on Monday, three days after it began
ground operations in the Palestinian enclave.
    At least 8,306 Palestinians have been killed, including
3,457 children, in Israeli strikes on Gaza since Oct. 7, the
health ministry in Hamas-controlled Gaza said on Monday.
    
($1 = 3.7513 riyals)

 (Reporting by Ateeq Shariff in Bengaluru, editing by Ed Osmond)
 ((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))