Most Gulf financial markets ended higher on Tuesday, following in the footsteps of gains in global stocks, as traders clung to hopes that interest rates would peak soon and then decline later this year.
However, the Saudi stock market continued its losses, affected by profit-taking.
The Dubai Stock Exchange index rose 1%, supported by a 1.1% increase in Emirates NBD and an increase in the Dubai Water and Electricity Authority (DEWA) by 1.2%, following the shareholders’ approval of a one-time special cash dividend of 3.34 fils per share, according to Reuters.
And support the publication of data on the improvement of business conditions in the Dubai stock market.
Farah Murad, senior market analyst in the Middle East and North Africa division at XTB, said that the local economy continued to advance month by month, which provided favorable conditions for the recovery of local stocks.
“As a result, the main index may peak this year and may hit new highs,” she added.
The Abu Dhabi Stock Exchange index rose 0.1%, and the Qatari index rose 0.4%, supported by a 1% rise in Qatar Islamic Bank.
Oil prices rose, which is a strong driver of the Gulf financial markets, after Chinese inflation data indicated continued weak demand, but the decline in the dollar and hopes that the US central bank may ease its monetary policy after providing an important US inflation report this week provided some support.
The Saudi stock market index fell 0.5%, affected by the decline in the share of Retal Urban Development by 0.8%, and the decline in the share of Al-Rajhi Bank by 1.2%.
Outside the Gulf region, the leading stock index in the Egyptian Stock Exchange rose 1.4%, as most stocks rose, including the Eastern Company for Smoke (Eastern Company), which jumped 6.2%.