Mideast Stocks: Shares gain on dovish Fed tone, Mideast in focus

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

10/10/2023 09:20

By Md Manzer Hussain
       Oct 10 (Reuters) - Stock markets in the Gulf climbed in
early trading on Tuesday as U.S. rate worries eased, while
investors kept their focus on fresh military conflict in the
Middle East after a surprise attack by Hamas militants on Israel
over the weekend.
    Federal Reserve officials indicated on Monday that rising
yields on long-term U.S. Treasury bonds could steer the Fed from
further hikes in its short-term policy rate.
    Monetary policy in the six-member Gulf Cooperation Council
(GCC) is usually guided by policy decisions by the Fed because
most regional currencies are pegged to the U.S. dollar.
    In Qatar, the benchmark  .QSI  index rose 0.9% with all
sectors in the green, supported by a 0.9% gain in the region's
largest lender Qatar National Bank  QNBK.QA  and 1.3% rise in
Commercial Bank COMB.QA .
    Saudi Arabia's benchmark stock index  .TASI  was up 0.6%,
helped by gains in all sectors. Etihad Atheeb Telecommunication
 7040.SE  rose 3.2% and Lumi Rental  4262.SE  added 2.1%.
    Dubai's benchmark stock index  .DFMGI  rose 0.3%, with Emaar
Properties  EMAR.DU  climbing 2.4% and Tecom Group  TECOM.DU 
gaining 1.9%.
    In Abu Dhabi, the benchmark stock index  .FTFADGI  edged up
0.1%, aided by a 5.5% surge in Palms Sports  PALMS.AD  and 1.8%
gain in Aldar Properties  ALDAR.AD .
    Markets are keeping a close watch on clashes between Israel
and the Palestinian militant group Hamas after the latter's
unexpected attacks on Saturday. 
    The Israeli military said it called up an unprecedented
300,000 reservists and was imposing a total blockade on the Gaza
Strip, raising expectations of a possible ground assault.

 (Reporting by Md Manzer Hussain
Editing by Bernadette Baum)
 ((MdManzer.Hussain@thomsonreuters.com;))