The monetary policy of the six Gulf Cooperation Council countries is usually guided by the decisions of the US Central Bank, as most of the region’s currencies are pegged to the dollar.
The Saudi index increased 1.5 percent, continuing its gains from the previous session, driven by a 3.9 percent rise in Al Rajhi Bank shares and a 4.5 percent rise in Saudi Telecom.
George Pavel, General Manager at Capex.com for the Middle East, said that the Saudi Stock Exchange continued its gains, but it may reach a stage of resistance near its previous peak. “At the same time, the performance of the oil market may continue to weigh on sentiment,” he added.
Oil prices, a major driver of financial markets in the Gulf, fell amid indications that the United States had reached its peak production, which outweighed the impact of positive indicators on demand for crude from China.
But the shares of the oil giant Aramco fell by one percent, with the stock trading after the right to distribute cash dividends expired.
The index closed in Abu Dhabi up by 0.4 percent.
The Qatari index also increased 1.6 percent, with most of the stocks listed on it rising, including Qatar Islamic Bank, which rose 2.7 percent.
But Dubai’s main index bucked the general trend and fell 0.3 percent.
Pavel said that the Dubai Stock Exchange witnessed price correction operations after a short period of stability.
He continued, saying, “Modest business results put pressure on morale, although local fundamentals remained strong and could help limit losses.”
Outside the Gulf region, the Egyptian leading stock index rose 1 percent.
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