Middle East Stocks Gain on Bargain Hunting
DUBAI: Middle East stock markets mostly climbed on Sunday as bargain hunters returned, driven by global optimism after weak U.S. jobs data boosted hopes of rate cuts. However, Saudi Arabia’s market kept sliding, edging closer to a two-year low.
The Saudi benchmark index slipped 0.2% in a subdued session, with most sectors closing lower. Major lender Al Rajhi Bank dropped 0.4%, while ACWA Power slid 2.7%. In contrast, oil giant Aramco edged up 0.1%, recovering slightly after hitting its lowest point in over five years in the previous session.
Oil prices inched higher after a Ukrainian drone strike disrupted Russia’s main western port, though gains were limited by concerns over weak U.S. jobs figures and persistent inflation affecting demand outlooks.
In Qatar, the main index gained 0.4% as renewed investor confidence lifted financial stocks. Qatar Islamic Bank advanced more than 1%. Market participants remain focused on the U.S. Federal Reserve, with expectations for a rate cut this Wednesday and further reductions anticipated in October and December. With Gulf currencies largely pegged to the dollar, Fed policy plays a crucial role in shaping the region’s monetary direction.
Beyond the Gulf, Egypt’s blue-chip index added 0.5%, marking its third consecutive day of gains across multiple sectors. Orascom Construction surged 4.7% after its primary listing debut on Abu Dhabi’s main index while maintaining a secondary listing on the Egyptian exchange.
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