By Ateeq Shariff
Most stock markets in the Gulf ended higher on Thursday supported by hopes of further U.S. interest rate cuts this year and a ceasefire deal in Gaza that could ease geopolitical tensions in the region.
Saudi Arabia's benchmark index TADAWUL:TASI rose 0.2%, led by a 0.8% rise in Al Rajhi Bank TADAWUL:1120 and a 1.1% increase in Saudi Arabian Mining Company TADAWUL:1211.
Market participants cheered Israel and Hamas agreeing to the first phase of U.S. President 's plan for Gaza on Wednesday, a ceasefire and hostage deal that could open the way to ending a bloody two-year-old war that has upended the Middle East.
The Gaza ceasefire agreement offers a window of opportunity for significant economic and investment transitions in the Middle East. It presents a chance to rebuild regional confidence and redirect capital toward growth and development rather than caution and risk aversion, said Rania Gule, senior market analyst at XS.COM.
"While the current phase allows investors to move tactically toward higher-risk assets, prudence and disciplined portfolio management remain essential to ensure that this opportunity is leveraged safely and sustainably."
The Qatari index QSE:GNRI gained 0.3%, with telecom firm Ooredoo QSE:ORDS advancing 1.6%.
Federal Reserve officials agreed that risks to the U.S. job market were high enough to warrant a rate cut, but remained wary amid stubborn inflation, per minutes of the September 16–17 meeting released on Wednesday.
Markets are pricing in a 25-basis-point cut each in October and December, with probabilities of 93% and 78%, respectively, according to the CME 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.
In Abu Dhabi, the index ADX:FADGI inched 0.1% higher. However, gains were limited by losses in Abu Dhabi National Oil Company's (ADNOC) listed subsidiaries, including ADNOC Drilling ADX:ADNOCDRILL, which declined 3.6%.
Abu Dhabi state oil giant ADNOC said on Wednesday that its six publicly listed subsidiaries will distribute 158 billion dirhams ($43.02 billion) in dividends by 2030.
** Egypt was closed for a public holiday
Saudi Arabia
TADAWUL:TASI rose 0.2% to 11,583
Abu Dhabi
ADX:FADGI up 0.1%% to 10,143
Dubai
DFM:DFMGI was flat at 5,958
Qatar
QSE:GNRI added 0.3% to 10,897
Bahrain
BAHRAIN:BHBX finished flat at 1,971
Oman
(.MSX30) gained 1% to 5,250
Kuwait
(.BKP) lost 0.5% to 9,302
($1 = 3.6729 UAE dirham)