Stock markets in the Gulf closed mixed on Monday, after US lawmakers reached an agreement in principle on the debt ceiling, while concerns about further rate hikes by the Federal Reserve clouded sentiment.
US President Joe Biden and House Speaker Kevin McCarthy reached an agreement over the weekend to suspend the $31.4 trillion debt ceiling and put limits on government spending for two years. Both sides expressed confidence that members of the Democratic and Republican parties would vote in support of the agreement.
The main index in Dubai rose 0.1%, supported by a 1.2% rise in Dubai Islamic Bank, according to Reuters.
The main index in Abu Dhabi fell 0.4%.
The main index in Saudi Arabia, “TASI”, gave up early gains to close flat, after the increase in the stocks of the financial sector was offset by losses in health care stocks.
United Electronics shares rose 3.4% after Reuters quoted two well-informed sources as saying that the company is planning an initial public offering of its company (Facilitation for Finance) for financing services that comply with the provisions of Islamic Sharia.
Oil giant Aramco was among the decliners, losing 0.6%.
Crude oil prices, a major catalyst for financial markets in the Gulf, fell as economic concerns about raising interest rates overshadowed the debt ceiling agreement in the United States.
Outside the Gulf region, the leading index in Egypt increased by 0.5%, supported by a 2.7% jump in Eastern Company for tobacco products.
