Mideast Stocks: Most Gulf markets end higher on US inflation data

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Traders monitor screens displaying stock information at Qatar Stock Exchange in Doha, Qatar June 5, 2017.

Most stock markets in the Gulf ended higher on Thursday, helped by a cooler-than-expected U.S. inflation print, although uncertainty remained over tariffs, which continue to threaten economic stability.

U.S. consumer prices increased less than expected in February, but the improvement is likely temporary against a backdrop of aggressive tariffs on imports that are expected to raise the costs of most goods in the months ahead.

Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Federal Reserve's decisions, as most regional currencies are pegged to the dollar. Investors now await U.S. Producer Price Index data due at 1230 GMT to gain further insights into the Fed's monetary policy.

Saudi Arabia's benchmark index added 0.2%, supported by a 0.6% increase in Al Rajhi Bank. Elsewhere, Rasan Information Technology Company soared 9.9%, on completion of an accelerated book-building process to sell about 17.16% stake at 69 riyals. However, oil giant Saudi Aramco slipped 1%. Meanwhile, global oil supply could exceed demand by around 600,000 barrels per day this year, the International Energy Agency said in a monthly oil market report on Thursday, after a downward revision to its 2025 demand growth forecast.

Dubai's main share index finished 0.5% higher, with blue-chip developer Emaar Properties rising 1.1%.

In Abu Dhabi, the index added 0.2%, helped by a 0.9% increase in ADNOC Gas. The energy firm appointed Al Ramz Capital as liquidity provider.

The Qatari benchmark eased 0.1%, hit by a 0.3% fall in the Gulf's biggest lender Qatar National Bank, while United Development Company retreated 4.7%, its biggest intraday fall since late-June 2023, as the stock traded ex-dividend. Outside the Gulf, Egypt's blue-chip index rose 0.8%.

Egypt to cut fuel subsidies to cost recovery level by December, as it works to reduce a wide current account deficit, the International Monetary Fund said on Wednesday.