Most stock markets in the Gulf ended higher yesterday, with the Saudi index snapping three sessions of losses, ahead of a gathering of global central bankers in Jackson Hole.
A round of soft manufacturing surveys had revived hopes central banks were done with policy tightening, though that might change depending on Federal Reserve Chair Jerome Powell’s speech at the annual summit in Wyoming today.
Oil and gas exporting countries in the Gulf tend to follow the Fed’s rate moves, as most regional currencies are pegged to the US dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.
Saudi Arabia’s benchmark index gained 0.3 per cent, with oil giant Saudi Aramco gaining 0.4pc and Saudi National Bank finishing 1pc higher.
The Saudi stock market stabilised to a certain extent and traded sideways this week although uncertainty gripped energy markets, said Hani Abuagla, senior market analyst at XTB Mena.
“The main index could be exposed to new price corrections next week if oil prices decline again.”
Prices of oil steadied after earlier declines caused by disappointing economic data from key economies, with investors awaiting Powell’s speech for clues.
Dubai’s main share index added 0.2pc, helped by a 1.6pc rise in Emirates Central Cooling Systems Corp.
In Abu Dhabi, the index gained 0.4pc.
The Qatari benchmark closed 0.3pc higher, with petrochemical maker Industries Qatar advancing 1.8pc.
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