Most Gulf region stock exchanges ended trading higher on Sunday, with lower-than-expected data supporting inflation in the United States, which supports the view that the US Central Bank will reduce interest rates early in the new year.
A US Commerce Department report showed that prices fell in November for the first time in more than three and a half years.
The Federal Reserve (US Central) indicated on December 13 that it had reached the end of the monetary tightening cycle and opened the door to lowering interest rates next year.
Monetary policy in the six countries of the Gulf Cooperation Council is usually guided by the decisions of the US Central Bank, as most of the currencies of the countries of the region are pegged to the dollar.
The Qatari index rose for the sixth consecutive session and ended Sunday’s trading at an increase of 1.1 percent, with all sectors rising.
Qatar Islamic Bank shares increased 3.3 percent, and Commercial Bank shares increased 1.9 percent.
The Saudi index rose 0.6 percent, after two consecutive sessions of losses, driven by gains achieved by all sectors. Shares of Etihad Atheeb Communications Company (TADAWUL:7040) rose 3.7 percent and Lumi Car Rental rose 3.1 percent.
Shares of Al Rajhi Bank, the largest Islamic bank in the world by asset value, also rose 1.3 percent.
Outside the Gulf region, the leading Egyptian index declined for the fourth session in a row and ended Sunday’s trading with a two percent decline, pressured by a 3.2 percent decline in Commercial International Bank (EGX:COMI) shares and a 5.1 percent decline in e-Finance shares.
