Business
Gulf bourses gain on optimism over further US rate cuts
Gulf bourses gain on optimism over further US rate cuts
About this update from Al Rajhi Bank
By Ateeq Shariff Gulf stock markets closed on positive trajectories on Sunday, propelled by heightened investor expectations surrounding potential additional reductions in U.S. interest rates.Investors also reacted positively to Palestinian militant group Hamas' agreement to some of the terms in U.S. President Donald Trump's plan to end the war in Gaza, though U.S. Secretary of State Marco Rubio said the war in Gaza has "not yet" ended, describing the release of the hostages held by Hamas as a first phase.The key U.S. Investors are pricing in a 97% probability of a 25-basis-point rate reduction in October and a 85% likelihood of another similar cut in December, according to CME Group's FedWatch tool.The Fed's stance carries heavy clout in the Gulf, where most currencies are pegged to the U.S. dollar, anchoring regional monetary policy.Saudi Arabia's benchmark index TADAWUL:TASI gained 0.3%, with Al Rajhi Bank TADAWUL:1120 rising 0.5% and National Shipping Company of Saudi Arabia (Bahri) TADAWUL:4030 jumping 5.7%.Bahri on Wednesday entered into a purchase agreement with International Maritime Industries Company for the construction and delivery of six dry bulk carriers. The total contract value is estimated at approximately 762 million riyals ($203 million).In Qatar, the index QSE:GNRI added 0.5%, with the Gulf's biggest lender Qatar National Bank QSE:QNBK rising 1%.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 finished 0.8% higher, led by a 1.7% gain in Commercial International Bank EGX:COMI.Saudi ArabiaTADAWUL:TASI gained 0.3% to 11,529QatarQSE:GNRI added 0.5% to 10,916 EgyptEGX:EGX30 up 0.8% to 37,211 BahrainBAHRAIN:BHBX rose 0.8% to 1,968Oman(.MSX30) was up 0.6% to 5,211Kuwait(.BKP) was flat at 9,319($1 = 3.7492 riyals)