Mideast Stocks: Most Gulf shares rise on dovish Fed tone; Mideast in focus

PHOTO

Most stock markets in the Gulf advanced on Tuesday as U.S. rate worries eased, while investors kept their focus on raging conflict in the Middle East after a surprise attack by Hamas militants on Israel over the weekend. Top Federal Reserve officials on Monday indicated rising U.S. Treasury yields could steer the central bank away from further rate increases.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by policy decisions by the Fed because most regional currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark index bounced back from an eight-session losing streak and closed 0.6% higher, lifted by gains in energy, finance and IT sectors. The world's top oil exporter Saudi Aramco surged 1.2% and Riyad Bank shot up 5.1%. Among the gainers, Saudi Arabian Mining and Elm Company climbed 2.1% and 1.8% respectively.

The Qatari index inched up 0.2%, snapping four- session straight losses, supported by a 1.1% rise in Industries Qatar and 0.7% gain in Qatar National Bank. QNB, the region's largest lender, reported a nearly 8% rise in third-quarter net profit on Tuesday after market hours.

Dubai's benchmark index recouped much of its losses to end 0.1% lower after it slumped 2.6% a day earlier, the sharpest fall since June last year. The real estate developer Emaar Properties rose 2.3% and Tecom Group added 1.9%. However, the emirate's largest lender Emirates NBD sank 2.3% and Emirates Central Cooling Systems Corp dropped 3.2%.

In Abu Dhabi, the benchmark index retreated for a fifth consecutive session and ended 0.2% lower, with Abu Dhabi National Oil Company for Distribution falling 1.7% and the UAE's largest lender First Abu Dhabi Bank dropping 1.5%.

Outside the Gulf, Egypt's blue-chip index was up for a second session and ended 1.6% higher with almost all its stocks in positive territory. Misr Fertilizers Production shot up 10.9% and Eastern Co surged 5.4%. Meanwhile, investors continued to monitor developments in the conflict in Middle East, with Israel on Tuesday saying it had re-established control over the Gaza border.