Most stock markets in the Gulf closed higher on Thursday, recouping early losses as oil prices rebounded, but gains were capped by the Federal Reserve’s decision to raise interest rates.
The Saudi “TASI” index rose 0.4%, with the share of Dr. Sulaiman Al-Habib Medical Services Group rising 1.4%.
The Saudi stock market has stabilized somewhat with the recovery in oil prices, according to Reuters.
Fadi Riyadh, chief market analyst at Capix.com, said that the main index witnessed a price correction and may be affected by the mixed results of corporate earnings.
“However, positive domestic fundamentals continue to offer support and could help the market return to the upside,” he added.
A senior official at the International Monetary Fund said government-led reforms and growth in private investment in new sectors would help support growth in Saudi Arabia’s non-oil economy amid an expected sharp slowdown in overall growth this year.
In Dubai, the main index rose 0.4%, supported by a 3.2% jump in the shares of Air Arabia, a low-cost airline.
In Abu Dhabi, the index increased 0.3%.
Oil prices stabilized after the European Central Bank’s decision to slow the cycle of rate hikes, but were unable to offset much of this week’s drop of more than 8% in light of demand concerns in major consumer countries.
The Qatari index rose 1.5%, and most of the stocks on the index were in the green zone, including the share of the Commercial Bank, which ended the day’s trading, up 5.3%.
According to Riyadh, the Qatari Stock Exchange maintained positive expectations while natural gas prices remained stable and some companies announced strong profits.
The Egyptian Stock Exchange is closed for an official holiday.
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