Mideast Stocks: Gulf bourses open higher on less-hawkish Fed stance

The Commercial Bank (P.S.Q.C.)

08/02/2023 09:07

By Md Manzer Hussain
       Feb 8 (Reuters) - Gulf stock markets tarded higher on
Wednesday after less-hawkish comments from U.S. Federal Reserve
Chair Jerome Powell lifted sentiment and fuelled investor hopes
that it may soon ease monetary policy.
    In an eagerly awaited speech earlier on Tuesday, the Fed's
Powell reiterated that disinflation has begun.
   With less-aggressive interest rate hikes in the United
States, the market is hoping the world's biggest economy and oil
consumer can dodge a sharper slowdown in economic activity or
even a recession and avoid a slump in oil demand.
    Most Gulf Cooperation Council countries, including Saudi
Arabia, the United Arab Emirates and Qatar, have their
currencies pegged to the U.S. dollar and follow the Fed's policy
moves closely, exposing the region to a direct impact from
monetary tightening in the world's largest economy.
    The Qatari Stock index  .QSI  rose 0.4%, lifted by gains in
almost all sectors with Qatar Insurance jumping 5.5%, and
heavyweight Islamic bank Qatar Islamic Bank climbing 1.1%.
    Gulf's largest lender Qatar National Bank rose 0.4%,
recouping losses after two sessions of decline.
    Dubai's benchmark stock index  .DFMGI  rose marginally with
Emaar Properties rising 1.1% and tolls operator Salik gaining
0.8%. But, Dubai's biggest lender Emirates NBD and Emirates
Central Cooling  EMPOWER.DU  declined 0.7% and 0.6%,
respectively.
        Saudi Arabia's stock index  .TASI  edged 0.1% higher to
snap seven sessions of losses. The benchmark index was aided by
energy and healthcare sectors with oil giant Saudi Aramco rising
0.5% and Dr Sulaiman Al-Habib Medical gaining 0.3%.
        The luxury real estate developer Retal Urban and Saudi
British Bank fell 0.6% and 3.1%, respectively.
    In Abu Dhabi, the benchmark stock index  .FTFADGI  opened
0.2% higher, supported by a nearly 1% gain in Alpha Dhabi and
0.8% rise in largest lender by assets, First Abu Dhabi Bank.
    Abu Dhabi National Hotels jumped 4.4% after the lender
reported an increase in its full-year net profit.
 (Reporting by Md Manzer Hussain; Editing by Sherry
Jacob-Phillips)
 ((MdManzer.Hussain@thomsonreuters.com;))